The Tenant Fees Ban Explained

A comprehensive but jargon free guide to the new Tenant Fees ban

What is the tenancy fee ban?

As of June 1st 2019, letting fees will be banned and tenancy deposits will be capped for all tenancies signed after this date. Although the ban was originally mooted in 2016, the Tenants Fee Bill was passed in Parliament in February and is now the Tenants Fee Act.

If you’re a landlord, make sure you’re prepared for the upcoming ban and avoid any complications, penalties or even criminal fines. Because let’s face it, nobody wants that stress. For tenants, it’s important to know where you stand. 

Without further ado, here’s our summary of the crucial new rules. Familiarise yourself and polish your halo (there may or may not be a test at the end).

Rundown

Landlords now must limit tenancy deposits to five weeks’ rent (six weeks if the annual rent is above £50,000). Landlord’s must also limit holding deposits to one week’s rent and they must stop any other payments (except contractual default penalties).

If landlords don’t comply they will face fines of £5,000 for their first offence and fines of £30,000 for a second offence.

The main rules #themoreyouknow

Both landlords and agencies will only be able to charge the tenant for rent, tenancy deposit and a holding deposit. Extra charges such as reference fees, inventory or admin fees are all to be banned.

They can, however, charge late rent fees (over 2 weeks) and lost key charges. Late rent fees can be up to 3%, plus the Bank of England base interest rate, which will have to be calculated pro rata on the outstanding rate. Lost keys and any other security device can be charged the exact amount they cost to install or cut. These default fees will have to be written into the tenancy agreement.

Tenancy or security deposits will be capped at five weeks rent for properties up to £50,000 annual rent and six weeks rent for properties over £50,000 annual rent. Similarly, holding deposits are to be capped at one week’s rent. Not only that, but the holding deposit must be paid back to the tenant or put towards the first rental payment or security deposit.

If, however, the tenant withdraws or fails a right to rent check for example, the landlord can keep the holding deposit. 

Holding deposits will only be held for 15 days unless another date is agreed. After the deadline, the holding deposit must be repaid within 7 days either to the tenant, or towards the rent or tenancy deposit.

Penalties (about as fun as watching England in the World Cup)

If landlords or agents continue to charge banned fees, they will have to pay hefty fines. 

The first offence would be a civil offence, with a fine of £5,000. If the offence is repeated within five years, they would be charged a fine of £30,000 or face a criminal offence.

 

If you need any more information on the Tenancy Fees Act, don’t hesitate to grill our knowledgeable team. We love to bend your ear with our serious (and not so serious) facts. 

alex@daviesdavies.co.uk (Lettings Manager)
020 7272 0986
Davies & Davies Estate Agents, 85 Stroud Green Road, London, N4 3EG

Article by Sophie Taylor at Barefaced Studios

Photography by Odera Okoye at Barefaced Studios

Back to Insights
Part One: I’m a first-time buyer, get me out of here

By the time you’ve finished reading you’ll have stamp duty sussed and will be well on your way to retiring your renting days. So, before you start Googling obscure German hair thickening shampoo brands, read our handy guide to securing your starter home. It all begins with the stuff that makes the world go round: money.

Read More...
How to not Kill Anyone or end up in Jail

There’s a lot more to letting out a property than just handing over the keys. As your local property nerds, we’ve compiled a list of everything you need to know to make the process of renting out your property as easy and stress-free as possible. 

Read More...
To sell or not to sell, that is the question…

We’ve looked at the pros and cons of each decision to help you begin with this exciting new chapter in your life. Every situation is unique and we know the importance of this decision, so Davies and Davies are are here to help you make the right choice.

Read More...
What can you get for £400,000 in North London?

We don’t think you should have to compromise on space and style to save money in your new home search. At Davies and Davies we have a wealth of affordable properties boasting private gardens, Victorian architecture and original fireplaces all nestled comfortably in the heart of leafy and buzzing North London.

Read More...
Home Automation – How to Bring Your Home Into The 21st Century

Upgrading your home isn’t just about not wanting to appear out of touch when your neighbours pop round. Smart tech can put you in control of your bills, reduce your property’s environmental footprint and provide a talking point at dull dinner parties.

Read More...
How to make your property work for the planet and your pocket

With many of us switching up our shopping habits to include more ethical choices, adopting a sustainable mindset could just be the selling point your property needs. But it’s ‘gonna take more than a few LED light bulbs to create that green dream. From upping your recycling game to investing in smart tech, here are eight ways you can shrink your home’s environmental footprint while increasing your profitability.

Read More...
Davies & Davies voted the 7th Best Estate Agent in the UK

We’re pleased as punch to announce we’ve been awarded “Gold Exceptional” (the highest score you can get) in both sales & lettings, ranked 7th Best Estate Agent in the UK, by the Best Estate Agent Guide awards 2019.

Read More...
Taking the inside out: making the most of your outside space

If you’re lucky enough to have access to outside space, you may be itching to make the most of it now the weather is finally beginning to turn. Perhaps you can plant that herb garden you’ve been meaning to cultivate and really transform your basil pesto once and for all!

Read More...
The Tenant Fees Ban Explained

Our comprehensive but jargon free guide to the new tenant fees ban. As of June 1st 2019, letting fees for renters will be banned and tenancy deposits will be capped for all tenancies signed after this date.

Read More...
Women who Run North London: Alina from Davies & Davies

For the final piece in our series, today we’re spotlighting our very own Alina, who has been with D&D for the last 11 years. After starting out as a bookkeeper for the company, she has worked her way up through the business to become one of the two female directors at Davies & Davies. 

Read More...
Women who Run North London: Esther at Crisis

Everything you see when you step into Crisis has been tailored to Esther’s design and created with help from the charity’s volunteers. There’s a story behind it all- from the coffee bag dress in the window, to the coffee stained wooden units themselves.

Read More...
Women who Run North London: Claire from Barefaced Studios

The culture that Claire has created at Barefaced: of collaboration, attention to detail, and client care, is evident the moment you step through Barefaced’s doors. Though the agency’s reach stretches worldwide, they have deep roots within the local area, and know it inside out (especially anywhere serving food).

Read More...
Women who Run North London: Yvonne from Aquarius Beauty

Yvonne, and her sister, Sharon, are well and truly “Finsbury Parkers”. The salon is right at the heart of Finsbury Park, and with the trio of Aquarius Hair, Aquarius Beauty, and Mento, the family own this corner of Stroud Green Road.

Read More...
Women who Run North London: Bridget from The Deli at 80

The Deli at 80 is positively full to the brim with some of the best food produced both in the local area, and further afield (the cheeses, charcuteries, and mustards come direct from Paris!). 

Read More...
Women who Run North London: Mary from MoseyHome

Mary’s background at the V&A shines through the moment you step through the door- the store is beautifully curated and expertly arranged.

Read More...
Women who run North London: Georgina from Pretty Shiny Shop

Pretty Shiny Shop is aptly named- an eclectic treasure trove of gifts, cards, and jewellery, it is filled to the brim with things to tempt your magpie sensibilities.

Read More...
Women who run North London: Sharon from Mento

Mento is nestled just opposite Finsbury Park station, but bursting with vibrancy the moment you step through the door. We spoke to self-proclaimed Finbury-Parker, Sharon, over some Jamaican iced coffee. Part of our International Women’s Day 2019 series.

Read More...
Women who run North London: Kat from Salt the Radish

Salt the Radish is a mere five minute walk from Finsbury Park station, but it’s the area’s own little slice of calm, cafe culture. We sat down for a chat with Salt the Radish’s owner, Kat. Part of our International Women’s Day 2019 series.

Read More...
International Women’s Day

International Women’s Day has now been running since 1911, and this year’s theme is #BalanceForBetter. We thought this was a cracking opportunity to celebrate some of the incredible female-led businesses right on our doorstep.

Read More...
How to up Your Chances of Selling Faster and for More

At Davies & Davies we know the real deal when it comes to selling fast and at the right price. Here are our top insider tips for achieving the best deal, from the people who really know how to sell properties in your local neighbourhood.

Read More...
Jargon Busting: The Buyers and Sellers Edition

We all want to know what we’re talking about when dealing with something new or complicated, so here’s our attempt at busting some of the jargon that you are likely to encounter when buying or selling a property.

Read More...
Davies & Davies Estate Agents Finsbury Park - an independent, local estate agents in North London
Online or Traditional Estate Agents?

Does it really make a difference if you use a traditional high street estate agent or go for an online service? We speak to North Four Magazine about marketing, viewings, and negotiation.

Read More...
Inside These Walls interiors tour at this property in Finsbury Park, North London marketed by Davies & Davies Estate Agents
Inside These Walls: Conran-esque Design in Finsbury Park

Design-geek power duo Sarah and Charlie Almond takes us for a tour around their charming two bedroom home in Finsbury Park, delving into design inspirations, lighting squabbles and where to get the best Eggs Benedict in North London.

Read More...
Davies & Davies Estate Agent's guide to the new MEES property legislation for landlords and rental properties
Don’t You Forget About MEES: A Guide To The New Regulations

Hunt down the EPC rating for any properties you’re letting out, it might be time to upgrade! Think lighting, boilers, double glazing, smart technology, and the Green Deal.

Read More...

Get In Touch

Contact

info@daviesdavies.co.uk

020 7272 0986

Address

Finsbury Park Office,

85 Stroud Green Road,

London, N4 3EG

Opening Times

Mon – Thurs 0845 – 1815
Fri 0845 – 1800
Sat 1000 – 1600
Sun: Appointments by Request

Sales newsletter

* indicates required

By submitting your details you are consenting to Davies & Davies sending you their sales newsletter. You can request to have your data changed or removed at any time - please see our Privacy Policy.

Rentals Newsletter

* indicates required

By submitting your details you are consenting to Davies & Davies sending you their rentals newsletter. You can request to have your data changed or removed at any time - please see our Privacy Policy.