14th January 2019 saw the 3rd and final reading of the Tenant Fees Bill in the House of Lords. Lord Bourne of Aberystwyth confirmed on the afternoon of 15th January 2019 that subject to the Bill getting Royal Assent, the Tenant Fees Bill will come into effect on 1st June 2019 for all tenancies signed on or after that date.
Throughout the report stage amendments have been made; the deposit cap lowered from 6 weeks rent max to 5 weeks rent max for properties with an annual rent of less than £50,000.00.
The Ministry of Housing, Communities and Local Government believe that the amendments ‘strike a fair balance between improving affordability for tenants whilst ensuring that landlords and agents have the financial security they need’.
The final content of the legislation is not yet confirmed, however key points of the Bill are as follows;
What is exempted form the banned list? Holding deposits, rent, deposits and charges for defaulting on the contract are all exempted however are subject to additional restrictions as part as part of the legislation.
A lead local authority will oversee and police the new measures.
For further information on the Tenant Fees Ban in England;
Article Abridged from NLA & RLA