In 2016 Grazia’s sister site The Debrief ran a campaign called #MakeRentingFair. Thanks to the efforts of Debrief readers, Baroness Olly Grender, the Liberal Democrats and Shelter, the government decided to change the law on letting fees.
Chancellor Philip Hammond confirmed in his 2016 Autumn Statement that unfair and unjustifiable letting agents’ fees would be banned via the Tenant Fees Bill.
This week the date for the ban was finally announced in the House of Lords. From June 1 2019 it will be illegal to charge tenants in England letting fees.
Currently tenants can be charged a whole host of admin fees - including new tenancy fees, tenancy renewal fees and referencing fees charges - by both landlords and lettings agents. Landlords and agents found to still be charging fees will face fines of £5,000 for every fee charged, and face prosecution.
The new law also outlines fairer rules surrounding deposits. Landlords and agents will only be able to hold the equivalent of six week’s rent as a refundable deposit (and five weeks' rent where the annual rent is less than £50,000). Similarly, landlords and agents will only be able to ask for one week’s rent for a holding deposit.
Subsequently, renters with landlords or agents who held a bigger holding deposit (either more than five or six weeks rent) could be due a refund when the bill comes into place on 1st June.