Contract renewal fees

ZIgo123

Hello,

Wondering if anyone has some insight on this. Our contract is up for renewal for our rental flat in London. We signed an initial 1 year contract last year. We have been told by the estate agent (not landlord) that a £150 contract renewal fee is payable. The contract is exactly the same as last year except for date changes - basically it’s a copy and paste job.

I understand that letting agents can no longer charge these fees to renters in the UK. Is this allowed? It’s a lot of money to spend!

Thanks for your help.

SmashedAvacado

You don't need to sign a renewal. Your tenancy will continue regardless. If you want to sign, make this point to the agent, and say you'll sign but not pay, but otherwise you won't sign.

danlewi2

Yes they can still charge them as the bill has gone all the way through parliament etc. Switch to a periodic tenancy at above or pay the fee for a secured tenancy.

davidmcn

ZIgo123 wrote: »

I understand that letting agents can no longer charge these fees to renters in the UK.

In some of the UK. They still can in your bit.

saajan_12

ZIgo123 wrote: »

Hello,

Wondering if anyone has some insight on this. Our contract is up for renewal for our rental flat in London. We signed an initial 1 year contract last year. - so the fixed term is finished? An AST would automatically roll into a periodic tenancy if you don't renew. We have been told by the estate agent (not landlord) that a £150 contract renewal fee is payable. The contract is exactly the same as last year except for date changes - basically it’s a copy and paste job. - regardless, its a fee they choose to charge for a service, however minimal the work is. Don't like it, then negotiate or don't take the service.

I understand that letting agents can no longer charge these fees to renters in the UK. - no change has gone through yet, for now they CAN still charge fees. Is this allowed? It’s a lot of money to spend!

Thanks for your help.

Option 1: don't sign a new contract and just move to periodic tenancy automatically (more flexible for you and LL usually has to serve 2 months notice + go to court, all in ~6months to evict)

Option 2: sign and pay £150

Option 3: negotiate (but the agent can refuse)

ZIgo123

Thanks everyone that's super helpful!

G_M

sticky at the top of the page explains:


* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?