Rural Hub
Back

Advice to Rural Estate Owners on the Tenant Fees Act 2019 (England only)

2 mins

The Tenant Fees Act will come into force on 1 June 2019, having received Royal Assent on the 12th February 2019.

At a glance:

  • Most fees charged by landlords and their agents to tenants will be banned, apart from a number of ‘permitted payments’.
  • The ban will apply from 1 June 2019 for new and renewed Assured Shorthold Tenancies and licences to occupy. It will apply to pre-existing tenancies from 1 June 2020.
  • Landlords and their agents must ensure that their practices are compliant. Tenancy agreements should be reviewed to ensure they do not charge or refer to any prohibited payments.

The Act aims to deliver the Government’s manifesto commitment to ban landlord and letting fees paid by tenants and improve fairness, competition and affordability in the lettings sector. The Government announced its intention to ban fees in the Autumn Statement in 2016, following the private members bill proposed by Baroness Grender, the Liberal Democrat peer. The Government estimates that the Act will save tenants around £240 million a year in letting fees, which will come from letting agents’ fees (£160m) and knock-on costs to landlords (£80m).

The ban will apply to both Assured Shorthold Tenancies and licences to occupy. It does not cover long leaseholds, tenancies of social housing or holiday lets.

While the ban on fees initially applies to tenancy renewals, statutory periodic tenancies and new tenancies it excludes contractual periodic tenancies that arise after 1 June, the fees ban will be applicable to pre-existing tenancies from June 2020. Therefore, any fees charged to tenants after this date must comply with the Act otherwise they could make notices, such as section 21 notices for Assured Shorthold Tenancies, ineffective.

Any reference to landlord in this briefing note also includes their agents. Also the letting agent requirements will apply to landlords who let their own properties.

Download our paper to read further information on the Tenant Fees Act, including our coverage of the following topics:

  • Charges which landlords will be prohibited from charging
  • Permitted charges which a landlord / agent can make to tenants
  • Letting agent requirements
  • Penalties and enforcement
  • Rent controls and what is not in the Act
  • What S&P is doing – from Kate Eales, National Head of Lettings
Robert Malden
Senior Associate Director, Land Management
Chelmsford
441245807868
Send a message to Robert Malden
2 mins

Related Articles

13.05.2020

The restoration of Scottish peatland

Work on peatland restoration projects may have stopped across the UK but the clear long-term commitment to peatland restoration by both the UK and Scottish governments is a welcome boost.  The UK Peatland Strategy, published in 2018, aims to deliver 2m hectares of peatland in good condition, under restoration or being sustainably managed by 2040. […]
30.04.2020

COVID-19 insights on retail, offices and residential lettings

Our professional and research teams working across the wider Strutt & Parker and BNP Paribas Real Estate businesses have produced a number of ‘notes from the market’ updates on how different real estate markets have been affected by COVID-19 and offering advice to property owners.   Topics include: Residential letting impacts Retail impacts Office market impacts Student accommodation Please […]
21.04.2020

Strutt & Parker offers Time to Review tool for rural estates

Strutt & Parker has developed a new business analysis tool to offer rural estates insight into how they can improve the commercial performance of their business. Too often we are all so busy working in our businesses, that we don’t have time to work on them. However, with many rural estates facing business interruption as a result of the current […]
20.04.2020

Hedgerows and Boundary Grant Scheme deadline 1 May

Farmers and landowners in England have until 1 May to apply for capital grants worth up to £10,000 to help pay for the restoration of hedges and stone walls. Farmers – both owner occupiers and tenants – should consider making an application to the 2020 Hedgerows and Boundary Grant Scheme. The scheme falls under the […]

Talk to us

Want to talk to us about our rural specialisms? Send us a message and we will make sure it gets to the right person.

Please write your name
Please write a message

Sign up

Sign up to be notified when we launch new publications so you’re always ahead of the research.

Please write your name
Please write a correct email address
Send me updates about
Please tick a box