The Tenant Fees Act bans most letting fees and caps tenancy deposits, applying to new and renewed tenancy agreements signed on or after 1st June 2019.
The only payments that can now be charged to tenants for new contracts are:
• A refundable tenancy deposit capped at no more than 5 weeks’ rent (where the total annual rent is less than £50,000), or 6 weeks’ rent (where the total annual rent is £50,000 or above);
• A refundable holding deposit (to reserve a property) capped at no more than 1 week’s rent;
• Payments associated with early termination of the tenancy, when requested by the tenant;
• Payments in respect of utilities, communication services, TV license and Council Tax;
• A default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under the tenancy agreement.
Find out more: Detailed government guidance, to help you understand your rights and obligations under the Act, is available on GOV.UK.
Please see below a Tenant Deposit Cap Calculator devised by Tessa Shepperson of Landlord Law.