Tenant Fees Act comes into force

The highly-anticipated Tenant Fees Act, which will save renters across England an expected £240 million a year, came into force on 1 June.

Unexpected fees and high deposits can make properties harder for people to afford and are often not clearly explained upfront – leaving many prospective tenants unaware of the true costs of renting a property. Under the new law, tenants will be protected from unfair letting fees with most seeing tenancy deposits capped at five weeks’ rent.

The Tenant Fees Act is expected to save tenants across England at least £240 million a year, or up to £70 per household. The five weeks’ rent cap gives people the assurance that, legally, they cannot be expected to pay more than this (where the total annual rent is less than £50,000) to secure a property.

James Brokenshire, Communities Secretary, said: “From today, tenants will no longer be stung by unreasonable costs from agents or landlords, thanks to the implementation of the Tenant Fees Act. This Act bans unnecessary letting fees and caps the majority of deposits at 5 weeks’ rent – helping renters keep more of their hard-earned cash. Alongside our recent announcement to scrap no fault evictions in the sector, this will make renting fairer and more transparent – creating a housing market that works for everyone.”

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