Letting fees banned in England - MSE News

Former_MSE_Naomi

Landlords and letting agents in England won't be able to charge tenants letting fees from Saturday 1 June. If you're a renter, here are your new rights and what you still need to pay - plus what to do if you're charged an illegal fee...

Read the full story:
'Letting fees banned in England - your new rights'

Click reply below to discuss. If you haven’t already, join the forum to reply.

wacsa

My tenancy is up for renewal at the end of July, the estate agent charges £120 to renew the contract, regardless of whether it is 6 months, a year or 2 years. Each time I renew I have to sign a full contract, will all the pages I did the first time I signed for the property.


Is the estate agent still able to charge this, until June 2020, or is this classed as a 'new' tenancy, considering I have to sign a full contract each time? If I have to pay this year, is it capped to £50 or do I still have to pay their full fee?


Thank you in advance.

Comms69

wacsa wrote: »

My tenancy is up for renewal at the end of July, the estate agent charges £120 to renew the contract, regardless of whether it is 6 months, a year or 2 years. Each time I renew I have to sign a full contract, will all the pages I did the first time I signed for the property.


Is the estate agent still able to charge this, until June 2020, or is this classed as a 'new' tenancy, considering I have to sign a full contract each time? If I have to pay this year, is it capped to £50 or do I still have to pay their full fee?


Thank you in advance.

Or... you can just go monthly / periodic tenancy and pay nothing.

System

They can still charge this as its in your current agreement the new one however will have all the fees removed.


As Comms69 says go periodic that way no fees alternatively tell the agent you are happy to sign a new fixed term on the understanding they don't charge the fee

nick4

Hi,

My tenants signed up in Aug-18 and they're liable for the cost of an inventory check-out in Aug-19 when they move out. My understanding is that the fees ban applies to all new tenancies entered into on or after 1 June 2019 and therefore they're liable until 31st May 2020

A particular London estate agent have put a blanket ban on any fees whether tenants are new or existing. I have been told to pay for the check-out and claim it back from their deposit...?

They state "we are unable to do anything about this as this is [our] way of making sure the law is upheld". However, they're not actually upholding the law

Where in the act does it state that a tenancy signed before 1st June 2019 which included agreements to pay further fees will still have to pay these up until 31st May 2020?

This act has not been thought through very well because landlords will now increase their rent to cover these services, but it will be spread over 1 year. So tenants will now be paying extra via their rent, but this will be every year instead of just once when they move out

Many thanks

Comms69

nick4 wrote: »

Hi,

My tenants signed up in Aug-18 and they're liable for the cost of an inventory check-out in Aug-19 when they move out. My understanding is that the fees ban applies to all new tenancies entered into on or after 1 June 2019 and therefore they're liable until 31st May 2020

A particular London estate agent have put a blanket ban on any fees whether tenants are new or existing. I have been told to pay for the check-out and claim it back from their deposit...?

They state "we are unable to do anything about this as this is [our] way of making sure the law is upheld". However, they're not actually upholding the law

Where in the act does it state that a tenancy signed before 1st June 2019 which included agreements to pay further fees will still have to pay these up until 31st May 2020?

This act has not been thought through very well because landlords will now increase their rent to cover these services, but it will be spread over 1 year. So tenants will now be paying extra via their rent, but this will be every year instead of just once when they move out

Many thanks

So sack the agents? You have a contract with them.


Since the check-out is for your benefit you should be paying it anyway. Passing on the cost to the tenant isn't morally justified

need_an_answer

Do the check out yourself, it isn't difficult.


The fee only needs paying because you are opting for a third party to do it on your behalf.

nick4

My point isn't about morals or cutting costs etc, it is purely from a legal point of view. The article states that contracts signed prior to June are still liable for contracted fees until 31st May 2020, but I can't actually see this in the wording on the Act. So at the moment, I'm taking MSE Naomi's word on this matter

(I'm not in London at the moment as I'm on a long-term contract abroad, hence renting my flat out, so that's why I get third parties to sort stuff out. I think I'm going to change agent)

Comms69

nick4 wrote: »

My point isn't about morals or cutting costs etc, it is purely from a legal point of view. - Legal point of view is that these are your agents and your contract, which I cant read from here, dictates what action they take on your behalf.


The article states that contracts signed prior to June are still liable for contracted fees until 31st May 2020, but I can't actually see this in the wording on the Act. So at the moment, I'm taking MSE Naomi's word on this matter - You are correct in regards charging fees to the tenant. You however have a contract with the agent, which is not covered by this legislation. It is a private matter between the two of you.

(I'm not in London at the moment as I'm on a long-term contract abroad, hence renting my flat out, so that's why I get third parties to sort stuff out. I think I'm going to change agent)

That's fine. Pay for those 3rd parties. Not sure why your tenant should pay for something which is for your benefit.