Tenants in the private rented sector will no longer be forced to pay excessive fees for minor damages, as the British Government continues to crackdown on unfair letting fees.
The move is part of the Tenant Fees Bill which is currently working its way through Parliament but it’s not without criticism.
Under the new default fee provision, a landlord or agent will only be able to recover reasonable incurred costs, and must provide evidence of these costs to the tenant before they can impose any charges.
Ministers believe that this will put a stop, for example, to tenants being charged hundreds of pounds for a damaged item that actually only costs a few pounds to replace such as £60 to replace smoke alarms which the local council would have replaced for free.
Other amendments to the Bill brought forward by the Government include taking steps to ensure tenants get their money back quickly by reducing the timeframe that landlords and agents must pay back any fees that they have unlawfully charged.
The Bill is expected to save tenants around £240 million a year, with the Bill also giving them assurance that the deposit they pay at the start of the tenancy cannot exceed six weeks’ rent.
‘Tenants across the country, whatever their income, should not be hit with unfair costs by agents or landlords,’ said Rishi Sunak, Parliamentary Under Secretary of State at the Ministry of Housing, Communities and Local Government.
‘This Government is determined to make sure our housing market works and this new provision in the Tenant Fees Bill will make renting fairer and more transparent for all,’ he added.
However, there are concerns that MPs have not listened to valid points put forward by lettings agents. ‘We’re disappointed but unsurprised the Tenant Fees Bill has passed the House of Commons. Over the summer, we worked with Daniel Kawczynski MP on his amendment to allow agents to charge up to £300,’ said David Cox, chief executive of the Association of Residential Letting Agents (ARLA).
‘Although the amendment was unsuccessful, this shows that members involved in ARLA’s campaign have helped MPs understand the unintended consequences of the tenant fee ban with some MPs listening to the legitimate concerns of the industry,’ he explained.
‘As the Bill moves into the House of Lords we will continue working to ensure Parliamentarians understand the impact the ban will have on the whole private rented sector,’ he added.
