What does the new ban on tenant fees mean for you?

We answer the most frequently asked questions to help you understand the new law

From 1 June 2019, the government’s new ban on tenant fees will be live. As renters pay £160 million a year in unfair and uncompetitive fees, we know that people have questions about which fees will be banned and who is affected.

Read on to see our responses to the most frequently asked questions.

Why was the ban introduced?

There are now 4.7 million households living in the private rented sector — including 1.7 million families with dependent children — and they pay £13 million a month in unfair and uncompetitive fees.

Though we’ve been calling for this ban for a decade, costs have only increased. Our most recent research found that there was a huge variation in the size of fees being charged — between £15 and £300 to renew a tenancy, and between £6 and £300 to check a reference.

Will it affect me?

If you’re a private renter in England, this new law will apply to you. The question is when.

When does it come into effect?

The law will automatically apply to all new contracts signed on or after 1 June 2019.

The law will apply to all other contracts from 1 June 2020. This includes if you:

• signed your contract before 1 June 2019 and are in a fixed tenancy agreement,
• signed your contract before 1 June 2019 and have moved onto a ‘statutory periodic’ contract — sometimes called a ‘rolling’ contract, or
• signed your contract before 1 June 2019 and want to renew it.

Which fees will be banned?

The following payments will be banned:

• Viewing fees — you can’t be charged for looking around a property.
• Fees to set up a tenancy — all fees associated with setting up a tenancy will be banned. This includes referencing and guarantor fees, inventory check, credit checks and administration fees.
• Check-out fees — you can’t be charged for leaving a tenancy agreement, or for having the property professionally cleaned.
• Third party fees — you can’t be charged for using third parties for services such as reference checks or credit checks.

What can I still be charged for?

This is a short overview of the general costs that you can still be charged.

However, there are some caveats that apply — a comprehensive list can be found here.

I think I’m being charged a fee that’s been banned — what do I do?

If you think you’re being charged a fee that you shouldn’t have to pay, we recommend you seek advice. We strongly advise that you don’t withhold rent from your landlord or letting agent, as this would place you at risk of eviction.

Can I get a refund if I paid more than 5 weeks’ rent for a deposit?

If your tenancy started after 1 June 2019, your landlord or agent shouldn’t charge you more than 5 weeks’ rent (unless the annual rent of the property is over £50,000). If you’re unsure about this, our advice can help.

If your tenancy started before 1 June 2019, the cap won’t apply retrospectively. This means your landlord or agent doesn’t need to immediately return any part of the deposit which exceeds the 5-week limit. However, they will need to refund the deposit at the end of your tenancy in the usual way.

Will my landlord increase my rent to recover these fees?

Government guidance makes clear that landlords and agents aren’t able to charge more rent in the first few months to cover the cost of banned fees.

Scotland banned fees in 2012. The Housing, Communities and Local Government Select Committee looked at what effect this ban had on rents in Scotland, and the results were inconclusive. There has certainly been no sharp spike in rents to directly support this claim.

We’ll continue to work to make sure this new law helps protect tenants and stops them being charged unfair fees.