The Government have confirmed the Tenant Fees Bill will come into force on June 1 2019, so what impact does this have on global mobility and your assignees?
The bill creates a ban on lettings fees for all tenancies in England signed after1st June 2019. These fees include estate agent charges such as referencing, credit checks, inventories and admin charges that can vary between agents and can often be confusing and inconsistent for assignees relocating into the UK. The bill aims to reduce the initial cost of renting a property and make the upfront costs more transparent to renters.
What does the Tenant Fees Bill mean to you?
According to ARLA (Association of Residential Lettings Agents) the key points of the bill alongside banning of tenant fees include:
- Limits to security deposits which must not exceed the equivalent of 6 week's rent.
- Capping of holding deposit at no more than 1 week's rent and sets out requirements for landlords / agents on returning holding deposits.
- Capping of tenancy change fees at £50 unless evidence of greater costs being incurred is provided.
They add that alongside rent and deposits, agents and landlords will only be permitted to charge tenants fees associated with:
- A change or early termination of a tenancy when requested by the tenant
- Utilities, communication services and Council Tax
- Payments arising from a default by the tenant such as replacing lost keys.
The bill also sets out level of fines and criminal offences for breaches of the ban. The ban will be enforced by Trading Standards and will result in amendments to the Consumer Rights Act. Read more
If Bournes are managing your assignees relocation checks will be carried out by your relocation consultant to ensure that these fees are not being charged once the ban comes into force.
For more information
Please contact Bournes on +44 (0)1797228000 or email us.