Tenant Fees Ban and Permitted Payments

Tenant Fees Ban and Permitted Payments

“Tenant Fees Ban and Permitted Payments”

The Tenant Fees Ban affects all new tenancies and all renewed tenancies from 1 June 2019.  There is a one year transitionary period for all tenancies entered into before 1 June 2019.

The law means that:

      • all Landlords, Agents or third parties throughout England cannot charge any fee or take payment for granting, continuing, or ending a tenancy, unless the cost is a Permitted Payment as defined in the Act.
      • All other charges, fees and payments will be a Prohibited Payment and subject to a fine and/or a Banning Order (under the Housing and Planning Act 2016).
      • Every fee is ILLEGAL unless it is expressly stated as a PERMITTED PAYMENT.

Rent is a permitted charge, but if the rent amount varies from month to month, anything above the lowest month’s rent is a prohibited payment.

Callaways’ Lettings Team can be contacted on 01273 735237.