The Tenant Fees Act became law on June 1st 2019 and any new tenancies agreed from that date forward must not contain any requirement for payments listed in the Act as prohibited. If a new shorthold tenancy contract that is agreed or renewed after June 1stdoes contain requests for payments which are now banned, the landlord or agent could be fined £5,000, £30,000 or banned from the industry.
Now that the Tenant Fees ban is in place, recent rental market reports have shown average rents are on the rise. UK rents rise and fall for a variety of reasons and right now, it’s possible that a number of reasons are at play. However, according to ARLA Propertymark, the new Bill is the main culprit behind rising rents in May.
The Tenant Fee Ban Bill has received Royal Assent and will become law from June 1st 2019. The Bill has been much debated and discussed. But, for landlords managing their own tenants and property, what exactly does the new Bill mean for them and what details of their existing tenancy agreements and processes will need to change?
As the UK’s Letting Fees Ban Bill is now in force across England, the Welsh Assembly has debated and agreed a Lettings Fees Ban Bill of its own. After a third discussion, the Bill has been passed through parliament and is now awaiting Royal Assent. If it receives that – which it’s expected to – the likely date for it the Lettings Fees Ban Bill to become law, is September 1st, 2019.
Next month will mark the beginning of a fairer deal for Welsh tenants as a ban on unfair letting fees comes into place.
It seems as though almost every time a new law comes into force in the lettings industry, there is a negative impact on landlords’ profits. While the several new pieces of legislation already on the slate for 2019 shouldn’t make a huge difference to your profits, you should be prepared for some costs to increase.