We covered the key changes introduced by the Tenant Fees Act 2019 back in February (see here) when the new Act came into force.

The changes will apply to all new Assured Shorthold Tenancies, Student Lettings and licenses granted on or after 01 June 2019, and to all existing lettings from 01 June 2020.

The Act substantially limits the types and amount of such fees that can be charged to such tenants and imposes significant sanctions for non-compliance, including fines and criminal sanctions.

Perhaps most importantly, where a fee is taken which is not a permitted payment as defined by the Act, the landlord is prevented from serving any notice under section 21 of the Housing Act 1988 on the tenant until all such payments have been returned to the tenant. This considerably restricts the landlord’s ability to seek possession on ‘non-fault’ grounds, unless and until the payment has been returned to the tenant.

It is imperative that landlords and their agents are up to date with the changes and fees which are permitted by the Act, to avoid any later sanctions.

For more information about the Tenant Fees Act 2019 or residential lettings generally, please feel free to contact Faye Didcote, Senior Solicitor, on 01435 897297 or Faye.Didcote@kdllaw.com.

Disclaimer

This legal update is provided free of charge for information purposes only; it does not constitute legal advice and should not be relied on as such. No responsibility for the accuracy and/or correctness of the information and commentary set out in the article, or for any consequences of relying on it, is assumed or accepted by any member of KDL Law or by KDL Law as a whole. 

If you have received this update in error or wish to unsubscribe from future updates then please email us at info@kdllaw.com.