Letting Fees - A Thing of the Past?
16 October 2018 Student houses
Letting Fees - A Thing Of The Past?
Late in 2016, the Government announced that they would be banning all letting fees charged to tenants, in an attempt to even the playing field between landlords and tenants. By making the private rented sector more affordable, it opens up the market to young people and makes it much more accessible.
Although the bill is still in the preliminary stages, it will most likely be published early next year (2019) meaning it will come into effect before the next Academic year, so keep an eye out for any agents still trying to charge you fees!
The Government expects the fee ban to be enforced in 2019.
The main features of the bill include;
- Capping security deposits at 6 weeks rent, and new requirements for returning these deposits.
- Holding deposits (to remove the property from the market) will be capped at one weeks rent.
- Fees can no longer be charged for granting or renewing tenancies.
- Fees can no longer be charged for 'Adminstration costs'
- Fess can no longer be charged for references
If any of these are violated, the Letting Agent in question can be subject to some quite severe penalties. An initial breach of this ban can result in a fine of £5,000, and further penalties of up to £30,000 may be imposed for repeat offenders as an alternative to criminal prosecution.
Here at Abbey Rentals, we have already abolished our fees, meaning we are the first in Chester to now charge neither fees or deposits.
To secure your house for next year, come into our office or book a viewing with us over the phone on 01244560910 and we’ll be sure to find you and your friends the perfect house! :)