Letting fees ban: over halfway through the transitional period - Kuits Solicitors Manchester
  • Insights
  • Letting fees ban: over halfway through the transitional period

Letting fees ban: over halfway through the transitional period

Letting fees ban: over halfway through the transitional period

13th March 2020 - Published by Commercial property team

In June last year, the majority of fees that landlords and agents were charging to tenants were banned from being requested where the tenancy was entered into from 1 June 2019. As of 1 June 2020, the ban will apply to all applicable tenancies, irrespective of when they were entered into. By way of an example, a provision in a tenancy (entered into before 1 June 2019) that requires a tenant to pay a prohibited fee, would be valid between 1 June 2019 and 31 May 2020, but this will no longer be binding after 1 June 2020.

As a reminder, the ban applies to assured shorthold tenancies (except social housing or long leases), student accommodation tenancies and licences to occupy housing in the private rented sector in England.

Although the ban has been in place now for over 6 months, landlords and agents must ensure that they are familiar with the rules, as these will shortly apply to all applicable tenancies and they risk facing a financial penalty for non-compliance. The penalty is a fine of up to £5,000 and each request for payment of a prohibited fee is a fresh breach and an additional penalty incurred.

However, not all fees are banned. The permitted fees are as follows:-

If you are a landlord or agent and would like advice around letting fees, then please contact our property team on 0161 838 7875 or contact us here.

Subscribe to our mailing list