Renting Regulations
I own two houses in Cambridge that I currently rent out. I have heard there are some new regulations on the fees that can be charged to tenants. I don't want to fall foul of any new rules - can you advise me how the rules have changed?
From 1 June 2019 there will be a new system of charging fees to the tenant by the landlord and agent, which will effectively bar most fees which are presently charged to tenants, from being charged in the future. This will assist tenants financially and may squeeze landlords, and especially agents alike. It is called the Tenant Fees Bill which is presently being passed through the House of Commons and is receiving Royal Assent.
The key points to the Bill are, amongst other things, that letting fees will be banned. The landlord will only be able to charge rest, deposit specific default fees, frees for variations, assignment or novation, and damages. Further tenancy deposits will be limited to five weeks, and holding deposits will be limited to one week's rent. Default fees can only be charged in respect of rent arrears, which interest is now limited to a maximum of 3% above the bank of England...
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