The new rules for landlords and letting agents in England came into effect on 1 June 2019. The Tenant Fees Act will make it illegal to charge tenants any fees apart from the rent, deposits, and other necessary costs.
It means tenants will no longer face fees for services including viewings, credit checks, references and setting up a tenancy.
Citizens Advice claims people renting privately in England have collectively been paying £13m a month in fees for viewings, credit checks, references and setting up a tenancy.
The ban in England was first announced by Chancellor Philip Hammond in November 2016, when the government said it would become law “as soon as possible”.
The new legislation states that tenancy deposits will be capped at five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above.
The Government’s impact assessment said the new rules are likely to cost landlords £82.9 million in its first year, while letting agents will need to absorb £157.1m.
It will still be legal to charge fees for a change or termination of a tenancy if the tenant has requested to do so, or default fees such as late payment fees.