Is the tenancy set-up fee legal?

pphillips

Simonr66 wrote: »

The quite clearly says from[FONT=Arial,Arial][FONT=Arial,Arial] 1st June 2019, [/FONT][/FONT]if you enter into a tenancy agreement then the fees are banned.


The key is to determine when you entered that agreement is it when the tenancy begins or is it when you sign the tenancy or is it when you agree to take the house.


In this instance the payment was lawful as Comms69 says the legislation doesn't exist till the 1st June. How long ago did the process start, if it was say a month ago suck it up if it was just a week ago shame on that agent but still lawful.


I know I'm contradicting myself but the comment in bold is my opinion

The legislation does exist, see: http://www.legislation.gov.uk/ukpga/2019/4/contents/enacted but I doubt anyone on here has actually read it.

Wallflowerperks

Just to clarify, the agency was in touch today without prompting and confirmed that because I signed the tenancy agreement on June the 1st that even though I paid fees before the 1st, they were with regard to a tenancy taking effect from the legislation being “activated” and I am due a full refund.

need_an_answer

Wallflowerperks wrote: »

Just to clarify, the agency was in touch today without prompting and confirmed that because I signed the tenancy agreement on June the 1st that even though I paid fees before the 1st, they were with regard to a tenancy taking effect from the legislation being “activated” and I am due a full refund.

That's good to know...

Its always encouraging to hear that the particular agent handling your rental was prepared to comply with the new rules for those tenancies that happened within a short timeframe of the new regulations.

not all agents will do the same

System

pphillips wrote: »

The legislation does exist, see: http://www.legislation.gov.uk/ukpga/2019/4/contents/enacted but I doubt anyone on here has actually read it.

Actually I have read it, several times in fact. If you had agreed to enter a tenancy prior to the 1st June even if the tenancy started after then the fees could still be charged and this is why many agents were pushing tenant to sign the tenancy agreements early and not at point of move in.


And lets be clear here, the legislation had been drafted and given a specific start date so to all intense purposes didn't exist until that specified date as that is when it could be acted on.

System

Wallflowerperks wrote: »

Just to clarify, the agency was in touch today without prompting and confirmed that because I signed the tenancy agreement on June the 1st that even though I paid fees before the 1st, they were with regard to a tenancy taking effect from the legislation being “activated” and I am due a full refund.

That great news, they didn't have to but looks like they are trying to just do it right. Very few others would do the same

saajan_12

Wallflowerperks wrote: »

Just to clarify, the agency was in touch today without prompting and confirmed that because I signed the tenancy agreement on June the 1st that even though I paid fees before the 1st, they were with regard to a tenancy taking effect from the legislation being “activated” and I am due a full refund.

Well strictly if we want to clarify for other readers, you're not 'DUE' a refund based on the legislation. The LA may have chosen to refund the money to benefit the relationship or because they were getting the LL to reimburse the or because you're 'due' a refund based on their internal policy.

However the agreement for the fees being due was before 1st June so the legislation doesn't actually apply to you.

G_M

The agent has voluntarily agreed to refund you. Good for them.

But for the benefit of others in your situation, there was no legal requirement for them to do so.

See the Gov Guidance Notes here:

1. From 1 June 2019, if you enter into a tenancy agreement, student let or licence to occupy housing in the private rented sector, a landlord or agent willbe prohibited from charging you any fees or other payments that are not included in the list of permitted payments above.Landlords will be responsible for the costs associated with setting up, renewing or ending a tenancy (e.g. referencing, administration, inventory, renewal and check-out fees). Agents and landlords do not have to pay back any fees that they have charged you before 1 June 2019.

Wallflowerperks

Simonr66 wrote: »

Actually I have read it, several times in fact. If you had agreed to enter a tenancy prior to the 1st June even if the tenancy started after then the fees could still be charged and this is why many agents were pushing tenant to sign the tenancy agreements early and not at point of move in.


And lets be clear here, the legislation had been drafted and given a specific start date so to all intense purposes didn't exist until that specified date as that is when it could be acted on.

As mentioned, my tenancy did not begin until after June 1st, nor did I sign a tenancy agreement nor anything else indicating an intention to enter into the tenancy until after June 1st.

Wallflowerperks

G_M wrote: »

The agent has voluntarily agreed to refund you. Good for them.

But for the benefit of others in your situation, there was no legal requirement for them to do so.

I did read the Guidance notes at the time, but my confusion was borne from the fact that both the first and the last sentence from the section you quoted (wouldn’t let me include the link) apply to me, therefore creating a contradiction.

Anyway, the situation has reached its conclusion now so I thank you all for the responses. The very informative, the highly condescending and everything in between.

System

Wallflowerperks wrote: »

As mentioned, my tenancy did not begin until after June 1st, nor did I sign a tenancy agreement nor anything else indicating an intention to enter into the tenancy until after June 1st.[/QUOTE]



But you agreed to rent the property and undergo the referencing process so by definition you entered in to an agreement prior to the 1st June.


A moot point now as the agency has refunded you the money so well done that agency.