When does the ban come into force?

The ban will be effective from 1st June 2019 on all new tenancies. However, for existing tenancies the ban will not apply until 1st June 2020 unless a new agreement is taken out.

So what’s changing?

It will be illegal for letting agents or landlords to charge fees to tenants apart from a small number of exemptions (e.g holding deposits, default fees, fees for changing a tenant or ending a tenancy early)

What about referencing fees? Will I still have to pay for those?

No. The referencing fees will now be paid by the landlord.

That’s good news isn’t it?

Not necessarily. The landlord may be reluctant to pay for your referencing if there is any doubt about you passing. This may affect tenants who are self employed or whose income is “borderline” or anyone not in a permanent employment contract.

I need a Guarantor. Will I have to pay for the Guarantor Agreement?

No. The landlord will now pay for this.

That’s good news too, isn’t it?

Not necessarily. It’s an extra cost for the landlord on top of the referencing. This may mean landlords will be less inclined to rent to students or tenants who require guarantors.

Does the tenant still pay the check in fee?

No. The landlord will now pay this on top of the inventory fee and check out fee that they are already paying.

What about the holding deposit?

The holding deposit will now be one week’s rent.

And the deposit?

The deposit will now be 5 weeks rent instead of 6 (unless the rent is more than £50,000 per year). This will also apply for any new agreement taken out on an existing tenancy after 1st June 2019 and in this case a week’s deposit would be refunded.

Do we still have to pay the DPS fee to register the deposit?

No. The landlord will now pay this.

This is only a small amount, landlords won’t be too bothered about this surely?

Well actually they might be. The fee is payable whenever the deposit needs to be re-registered. For example, change of sharer, variation of the agreement etc. This may mean the landlord will be less inclined to agree to any changes to your tenancy.

What about lost keys? Breakages, damage etc?

These are still payable by the tenant either up front or via deduction from the deposit.

And repairs? E.g washing machine breaking etc.

As before, if the breakdown was caused by the tenant the tenant remains liable. Otherwise the landlord pays. No change here.

What about change of sharer?

For change of sharer you will be charged £50 (including VAT) or possibly more if necessary. For anything over £50 the agent or landlord will need to provide invoices or receipts to justify the additional cost. (As mentioned above, the landlord may be less inclined to agree a change of sharer as they will now have to pay the new sharer’s referencing fee).

What about pets?

The landlord can no longer ask for a higher deposit for pets. However, they can charge a higher rent. It is likely there will be two rents for a property, one for no pets, and a higher rent for pets. If the tenancy starts with no pet and the tenant subsequently asks to have a pet, the landlord can increase the rent to accommodate the extra wear and tear.

Do I still need to organise the end of tenancy professional clean?

Yes you do. You would need to source and book a firm and then pay them yourself. No change here.

I want to end the tenancy early. Will I incur any costs?

Assuming you are not exercising a break clause, then yes you will. As before you will be liable for the rent until new tenants are found, and for the landlord’s reasonable costs in re-letting the property. However, the landlord’s reasonable costs have now increased significantly and include, among other things, fees for tenant referencing, check in fees, and the other items mentioned above that you would more than likely be asked to pay for.

Are there any more costs for leaving early?

Yes, if the new rent is lower than the rent you are paying, you will have to pay the difference until the end of your tenancy.

This will make renting cheaper going forward won’t it?

Not necessarily. The additional financial burden on landlords comes on top of recent tax changes which have seen landlord’s tax payments increase significantly. Landlords are already selling up in alarming numbers. Over time this will lead to a shortage of rental properties which will result in rents increasing as tenants struggle to find somewhere to live from a smaller pool of available properties.

If you have any questions that are not answered here, please contact us.