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A Ban on Tenant Fees Is to Be Introduced On 1st June 2019

The UK Government have announced the introduction of a Tenant Fees Bill in an attempt to ban letting fees for Tenants. So, what does this mean for Landlords?

A Ban on Tenant Fees Is to Be Introduced On 1st June 2019

The ban will apply to all tenancies beginning on or after 1st June 2019 and is the same for both Landlords and Letting Agents. It will not apply to renewed tenancies and will not immediately apply for older tenancies. After one year the ban will attach to pre-existing tenancies, making any clauses which charge fees, ineffective. Any statutory and contractual periodic tenancies that arise after the Tenant Fees Act comes into force will not be affected.

The ban aims to place more enforcement on the letting sector and provide more transparency for Tenants. This will be achieved by altering the Letting Agent Transparency Requirements under The Consumer Rights Act 2015 so that it applies to property portals such as Rightmove and Zoopla, whilst also enforcing stronger convictions for breaches.

The permitted and banned fees under the new legislation are as follows:

Permitted Tenant Fees


Banned Tenant Fees

Utilities – if applicable

Charging for a Guarantor

Council Tax – if applicable

Credit Checks

Communications Services – if applicable


A change or early termination when requested by the tenant

Cleaning Services Inc. as a condition of allowing pets in the property

Payments incurred through a default by the Tenant - i.e. replacing lost keys.


Rent – subject to additional restrictions.


Landlords will be unable to charge a higher rent amount for the first portion of tenancy and then drop it down.


Admin Charges

Deposits – subject to additional restrictions.


Where the annual rent is below £50,000.00 the deposit will be limited to 5 weeks rent.


Where the annual rent is above £50,000.00 the deposit will be limited to 6 weeks rent. 

Requirements to have specific insurance providers

Holding Deposits – subject to additional restrictions.


A cap will be placed on Holding Deposits. They should be no more than one week’s rent.


Additional measures of the legislation will include new requirements on returning a holding deposit to a tenant.

Gardening services

Charges for defaulting on the contract – subject to additional restrictions.

Sending reminder payment letters

If damage to the property has occurred as a result of breach of contract. Landlords will be able to seek compensation for this via deductions from the deposit or court action.


The charge for a change to tenancy will be capped at £50.00. This will only change if the Landlord proves that greater costs were incurred.


For late payment of rent, landlords may charge above 3% of the Bank of England Base Rate in interest from the date payment is missed.


Where there is an initial breach of the ban there will be a fine of £5,000.00. As an alternative to prosecution, financial penalties of up to £30,000.00 can be issued. In cases where the Tenant has been unlawfully charged, they will be able to recover this via the First-Tier Tribunal. Until a Landlord has repaid any unlawfully charged fees, they will not be able to serve a Section 21 Notice to recover possession of their property.

The bill is still only draft legislation therefore it is subject to change. However, this allows Landlords to adjust accordingly ahead of the new rules. You should consider whether your future agreements comply with the new rules. Our Landlord and Tenant Department here at Hodgkinsons Solicitors can draft or alter your agreement and guide you through what should be included. Our Team provide expert guidance to Landlords in Skegness, Boston, Sleaford, Lincoln and beyond. To contact them call 01754 897150 or submit your enquiry online at