Letting fees ban extended to all tenancies: could renters be due reimbursement?

September 7, 2022

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The letting fees ban in England pertains to all tenancies from today, meaning some renters might be due a refund on overpaid deposits.

During the year-long transition period, England’s letting fees ban only put on new tenancies and some renewals, meaning those with older contracts could still face high administration charges when renewing or leaving. But from today, that’s changed.

Here, Which? explains how the ban works, and the consequences landlords and auctions face if they neglect to adhere.

What may be the letting fees ban?

The letting fees ban premiered in England on 1 June last year. It meant landlords and estate agents could no longer charge tenants administration fees for services such as referencing, inventories and drawing up contracts.

It also capped holding deposits at one weeks’ rent and upfront deposits at five weeks’ rent (or six weeks if the yearly rent is much more than lb50,000).

How will this change affect tenants?

Until now, tenants who signed contracts before 1 June 2021 could still be hit by high fees when renewing their contract or moving out after their tenancy. Now, even when such fees are stated in anything, they can’t be enforced.

The deposit cap being extended to all tenancies means renters who originally paid six weeks’ deposit when signing their tenancy agreement is going to be entitled to a sixth of the money back using their landlord or managing agent (unless they pay more than lb50,000 in rent each year).

It’s the landlord’s or letting agent’s responsibility tell you if you’ve overpaid, but there’s no harm to get in touch you to ultimately request a refund if you’re owed one.

What fees can landlords charge?

The letting fees ban stopped landlords and agents charging uncapped fees for many services, but landlords can continue to charge tenants fees for an additional:

Up-front deposits – limited to five weeks’ rent (or 6 weeks if the annual rent is much more than lb50,000).
Refundable holding deposits – limited to one weeks’ rent.
Default fees – when the tenant reaches least Fourteen days behind on rent or loses their keys.
Changes to tenancy agreements requested by tenants – limited to lb50.
Early termination fees – limited to the owner or agent's actual incurred cost.

Tenants will still need pay for utility bills and council tax if produced in their tenancy agreement.

What happens if landlords fail to adhere?

Landlords and agents who breach the rules could face fines as high as lb5,000 for every offence.

Repeated offenders face being summoned to court and maximum fines of lb30,000.

Since the ban arrived to force last June, The Property Ombudsman has handled 341 complaints from tenants who claimed letting agents have broken the guidelines.

Does the ban apply elsewhere in the united kingdom?

This ban only applies in England, but Scotland and Wales also have their very own bans on letting fees.

Letting fees have been outlawed in Scotland since 2012 and Wales launched its new rules shortly after England, in September 2021.

No fees ban happens to be in place in Northern Ireland.

Renting and also the coronavirus: your rights

Many landlords and their tenants are facing financial difficulties because of the outbreak of COVID-19.

The government has offered assistance to those impacted by allowing landlords to get loan payment holidays, that they can then pass on to tenants who're struggling to pay.

You will discover much more about the measures within our stories on tenant rights during the coronavirus outbreak and the challenges facing landlords during COVID-19.