The tenant fee ban is coming into effect on June 1st, 2019.
The industry need to act quickly, as this is only four months away. As of that date, agent and landlords will only be allowed to take payments for rent, deposits, late rent charges and lost keys or secturity devices.
The deposit amount has been capped at 5 weeks rent and there are stricter regulations around how the deposits are processed.
The purpose of this is to try and stop rogue landlord and agents charging extortionate fees (Some charge in excess of £500 per tenant!) and to make the what is a not very regulated sector much fairer. At Oulsnam, we welcome any changes to hold the participants in our industry to higher standards and are already activeitly preparing for this change. As David Cox, chief executive of ARLA says:
“This now gives agents the legal certainty they need to prepare for a post tenant fees ban world.”
Check out our more detailed blog for our thoughts on how this will impact on tenants and landlords alike.