Article Posted -
01 Nov 2017

DCLG

The Government has confirmed it will introduce the Draft Tenants’ Fees Bill to Parliament today - 1 November 2017.

The Government announced in the Autumn Statement 2016 that they would ban letting agents’ fees. From April to June 2017 the Government held a consultation on introducing a ban on letting agent fees paid by tenants.

During the 2017 Queens Speech the Government announced they would bring forward a Draft Tenants’ Fees Bill. The Government said the Draft Bill would include measures to ban landlords and agents from requiring tenants to pay letting fees as a condition of their tenancy and measure to enforce the ban with provision for tenants to be able to recover unlawfully charged fees.

According to Inside Housing the Draft Bill will:

  • Cap deposits at no more than one week’s rent and security deposits at no more than six weeks’ rent
  • create a civil offence with a fine of £5,000 for an initial breach of the ban on letting agent fees
  • create a criminal offence where a person has been fined or convicted of the same offence within the past five years. Penalties of up to £30,000 can be issued.
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