New Tenancy Fee Act

bitolas

Good evening,

I have a question regarding the new Tenancy act fee. So, basically, me and my girlfriend went to see a property that we really love and we made our offer set at 500 per week starting on 14th of June.

Our offer was accepted and we were told by the agency that we need to pay 2 x 500 = 1000 to take the flat off the market. We prompting did the transfer of the money.

Now we received the document called "Tenants terms of offer & proposed tenancy" to be signed and for our surprise, it's written in the document that "initial monies required" are:

- first rental
- 6 weeks deposit
- tenancy agreement fee - 300$
- reference + right to rent - 60$ each

As the New Tenancy Fee Act it's starting on 1st of June we imagine that this information it's wrong as per the new law:
- the deposit should be 5 weeks instead of the 6
- all the fees (tenancy agreement + referencing+ right to rent) are not chargeable anymore
- and even the holding deposit it should be one week rent instead of the two weeks that we already paid.

Can you help us with this situation? Do we have the right information?

Thank you

cashmonger

All the fees are still in place until after the 1st so even though the tenancy starts after you still are liable to pay the fees til then unless you refuse and go back after June 1st.

diggingdude

There are about 100 threads on this topic now on here which may help you

G_M

And today's date is.............???

bitolas

Yes we understand the new rules and we aware what the date is today! But also has been said that if contract starts from 1st June onwards, regardless when is signed, these fees shouldn't be charged...am I correct?

G_M

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/791273/TFA_Guidance_for_LandlordsAgents.pdf

When does the ban apply?

It depends on when a tenancy agreement was entered into.

The ban is being introduced in two stages.

1. From 1 June 2019, if you enter into a tenancy agreement, student let or licence to occupy housing in the private rented sector, you will be prohibited from charging 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 (i. e. referencing, administration, inventory, renewal and check-out fees).

Agents and landlords do not have to pay back any fees that have been charged to a tenant before 1 June 2019.

https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance

BurnCK

Considering the ban comes into effect on Saturday, I just wouldn't sign anything until then. It's only 2 days away.

Comms69

bitolas wrote: »

Yes we understand the new rules and we aware what the date is today! But also has been said that if contract starts from 1st June onwards, regardless when is signed, these fees shouldn't be charged...am I correct?

No, clearly not correct.

bitolas

BurnCK wrote: »

Considering the ban comes into effect on Saturday, I just wouldn't sign anything until then. It's only 2 days away.

But paying this initial amount to take the property out of the market doesn't put us in this bidding situation?

Because at this moment we only have a "New Tenants offer and tenancy propose", and I believe that not today neither tomorrow the formal Tenancy Agreement will be ready to sign.

System

bitolas wrote: »

But paying this initial amount to take the property out of the market doesn't put us in this bidding situation?

Because at this moment we only have a "New Tenants offer and tenancy propose", and I believe that not today neither tomorrow the formal Tenancy Agreement will be ready to sign.

By paying the requested fee you entered in to an agreement with the agency so the fee stands. If you had waited a few days you wouldn't have had to pay.