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Tenant Fees Act 2019

Introduction

Government has announced that with effect from 1st June 2019, it will be illegal for landlords and letting agents to charge administration and other types of fees to tenants – except those few prescribed by the legislation.

Jurisdiction

The Tenant Fees Act 2019 applies to housing in England only. Scotland and Wales have their own independent legislation.

Requirement

The legislation requires that a landlord (or agent) must not require a relevant person to make a prohibited payment to the landlord (or agent) in connection with a tenancy of housing in England (sections 1 & 2). The scope of such payments is extended to include making payments to any other nominated third party, or a requirement to enter into a contract with a third party for the provision of any service (other than utilities and communication contracts) or insurance.

Prohibited Payments

With the exception of rent, dilapidation deposits and holding deposits, almost any other type of payment that the tenant may be required to make in connection with the occupation (tenancy or licence) will be a prohibited payment. Tenancy terms that require a payment, or service with a third party are in most cases now banned.

Types of fees and tenancy terms that will be banned under the new legislation include:

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