Understanding the Tenant Fees Act: A Guide for Renters in London

Contact us today!

Sascha Pendigrast

Head of Operations

Show contact info
UK/Other US/CA Email

Welcome to the heart of London living! With the Tenant Fees Act reshaping the rental landscape since June 2019, navigating the city’s bustling property market has taken a new turn.

This pivotal legislation, which has saved renters an estimated £240 million a year according to government statistics, aims to make the rental process more transparent and affordable for millions of tenants. Whether you’re a first-time renter in the capital or considering your next move, understanding the Tenant Fees Act is crucial for a smooth and cost-effective relocation.

Let’s dive into what this means for you and how LondonRelocation.com can be your guiding light through the streets of London’s rental market, moving to London requires thorough planning and understanding of different neighborhoods.

Overview of the Tenant Fees Act

In June 2019, renting in London changed for the better. The Tenant Fees Act was introduced, marking a significant shift towards fairer renting practices. This act put a stop to many of the sneaky fees that renters used to face.

Importance for Tenants

For tenants, this law means more transparency and fewer unexpected costs. It’s all about making renting simpler and more straightforward.

What the Tenant Fees Act Means for You

  • Banned Fees: What You No Longer Have to Pay

  • Administrative Fees

    Gone are the days of shelling out extra for contract drafting or getting a copy of your agreement.

    Reference and Credit Checks

    The act says a big no to fees for checking if you’re a good tenant or can keep up with rent.

    Tenancy Renewals

    Decided to stay put in your rental home? You won’t be charged just for renewing your contract.

    Moving Out Inspections

    Moving out? Inspections to ensure everything’s in order shouldn’t cost you a penny.

  • Permissible Charges Under the Act

  • Rent and Deposits

    Obviously, rent is still on the table, and so is a refundable security deposit, capped at five weeks’ rent for most rentals.

    Bills and Utilities

    You’re still responsible for your household bills, from broadband to energy.

    Mid-Tenancy Changes and Late Rent Payments

    Need to tweak your contract mid-lease? That’ll be a £50 cap. Late with rent? Interest can only be charged after 14 days overdue.

    Repairs and Replacements

    If repairs are needed because of your actions, expect to cover the cost, provided it’s reasonable.

Covered Tenancies

Who is Protected by the Act

The Tenant Fees Act covers a broad spectrum, from assured shorthold tenants to lodgers living with a private landlord. It’s about keeping things fair for everyone.

Applicability to New and Existing Tenancies

Whether you’re just signing a lease or you’ve been in your flat for years, the protections apply to you.

Actions to Take if Charged a Banned Fee

  • Reporting to Trading Standards

  • If a landlord or agent tries to charge a banned fee, trading standards are your first port of call. They can investigate and enforce fines.

  • Potential Fines for Landlords and Agents

  • A first offense can cost a landlord or agent £5,000. Repeat offenders risk more severe penalties.

  • The Role of the Tribunal

  • Feeling wronged by a banned fee? The tribunal is where you can fight to get your money back.

How to Avoid Illegal Fees

Knowing Your Rights

Arming yourself with knowledge about the Tenant Fees Act is your best defense against unfair charges.

Seeking Redress for Unfair Charges

If you’ve been charged illegally, don’t hesitate to seek help. You’ve got the law on your side.

How LondonRelocation.com Simplifies Your Move

Facing the rental market in London, especially with the Tenant Fees Act in play, can feel overwhelming. LondonRelocation.com is here to make this transition as seamless as possible. Our team of experts not only navigates the complexities of the Act for you but also ensures you find the perfect rental home without any hidden fees or surprises.

Whether you’re moving from across the world or just across town, navigating these changes can still be challenging without expert guidance.

That’s where LondonRelocation.com steps in. Our experienced team understands the intricacies of the Tenant Fees Act inside and out. We dedicate ourselves to making your move to London seamless and stress-free.

With personalized searches and a deep understanding of the legal landscape, we take the stress out of relocating, letting you focus on settling into your new London life.

Ready to make your London move a reality without the hassle? Get in touch with LondonRelocation.com today.

Contact Us

FAQ: Navigating Rentals in London

  • Do tenants pay service charge in the UK?

  • In the UK, tenants typically don’t directly pay service charges unless they explicitly agree to in the tenancy agreement. Generally, service charges fall under the responsibility of the landlord, particularly in residential leases. However, it’s crucial to examine your specific contract carefully.

  • What happens if you don't pay rent in London?

  • If you don’t pay rent in London, landlords can issue a notice seeking possession under specific grounds, potentially leading to eviction. Initially, landlords may charge interest on late payments (as specified in the Tenant Fees Act). And are required to communicate and attempt to resolve the issue before escalating actions.

  • What is the Tenant Act in the UK?

  • The “Tenant Act” commonly refers to the Tenant Fees Act 2019 in recent contexts. This legislation prohibits landlords and letting agents from charging certain fees and sets caps on deposits to make renting fairer and more affordable for tenants.

  • How much can a landlord charge for damages in the UK?

  • A landlord can charge tenants for the cost of damages beyond normal wear and tear. The amount is limited to the actual cost of repairs or replacement. Landlords must provide evidence of the costs incurred. For disputes, tenants can challenge excessive deductions from their deposits through the deposit protection scheme’s dispute resolution service.

Your Relocation Made Easy – Get in Touch!

Contact us today!