Loophole in the new Tenancy Act 2019 fees? Cheeky La?!

KcEliMa

Hi All!
Just looking at houses to rent in the local area and noticed a particular Lettings Agents (countrywide company) are attempting to charge fees for a new tenancy. Now, they list these fees as separate from the new Tenancy Act 2019, saying something along the lines of them being fees from the Non Housing Act. They want to charge fees such as £300 for a tenancy agreement, £175 for a tenancy extension etc. Surely these are illegal? Is listing them as from the non housing act some sort of loophole? I have a screenshot of the fees but don’t know how to upload? Thanks

KcEliMa

Non Housing Act tenancy fees not affected by the Tenant Fee Act 2019:

Tenancy Agreement £300 inc VAT
Extension Agreement £125 inc VAT
Company Reference £175 inc VAT
Administration £50 inc VAT
Damage Fee £90 inc VAT
Guarantor Reference per guarantor £100 inc VAT
Deed of Guarantee £75 inc VAT
Check-In (minimum fee) £72 inc VAT
Arrears Fee £30 inc VAT
Overpaid Rent Return £25 inc VAT
Pet Licence £75 inc VA

Comms69

I suspect this is for commercial leases


And probably lodgers* - since it mentions a pet fee

System

KcEliMa wrote: »

Non Housing Act tenancy fees not affected by the Tenant Fee Act 2019:

Tenancy Agreement £300 inc VAT
Extension Agreement £125 inc VAT
Company Reference £175 inc VAT
Administration £50 inc VAT
Damage Fee £90 inc VAT
Guarantor Reference per guarantor £100 inc VAT
Deed of Guarantee £75 inc VAT
Check-In (minimum fee) £72 inc VAT
Arrears Fee £30 inc VAT
Overpaid Rent Return £25 inc VAT
Pet Licence £75 inc VA

Having checked countrywides' fees they do also list June 19 compliant fees for ASTs so you have been a bit disingenuous with your post however here are some examples of a Non Housing Act tenancy or otherwise know as a license,

1. Tenancies at very high or very low rent (in London, this means an annual rent below £1,000 or above £100,000);
2. The property is licenced for the supply of alcohol;
3. The tenancy is a holiday let;
4. The Landlord lives at the property.

If they were trying to use this method as a way to continue to generate fees then they would come unstuck and the penalties are huge however I doubt very much that they are that daft.

Owain_Moneysaver

The Act defines a tenancy (for the purposes of the Act) as:

• assured shorthold tenancies
• licences (lodger lettings for example)
• student lettings (provided by a specified educational institution)

The Act does not apply to contractual tenancies which would be used if the tenancy is for a company let or if it’s not to be the individuals only or principal home for example.

The Act also doesn’t apply to an assured tenancy (where no section 21 notice is ever available to the landlord).

https://www.landlordsguild.com/understanding-the-tenant-fees-act-2019/


This document (and also here) refers to:

A Non Housing Act Tenancy is formed when one of the following criteria is in place:
• The annual rent exceeds £100,000
• The property is occupied by an entity (Company let) rather that an individual
• The property is not used as a main or primary home
• There is a Resident Landlord

I think it is in error referring to a Resident Landlord, as this would be a lodger letting on licence and fall within the Act.

The Government says:

The ban applies to all assured shorthold tenancies, tenancies of student
accommodation and most licences to occupy housing in the private rented sector in
England.

The main instances where you might have a licence rather than a tenancy
agreement are where:
• there is no intention to enter a legal relationship (e.g. a friend has
invited you to house sit while they’re on holiday)
• there is no right to exclusive occupation (e.g. you are a lodger)

Comms69

Owain_Moneysaver wrote: »

https://www.landlordsguild.com/understanding-the-tenant-fees-act-2019/


This document (and also here) refers to:



I think it is in error referring to a Resident Landlord, as this would be a lodger letting on licence and fall within the Act.

The Government says:

To make it more complicated it doesn't apply to situations where " it’s not to be the individuals only or principal home for example."

KcEliMa

Wow... to call me disingenuous is unfair..

As I’ve said, we’re looking at houses to rent. On Rightmove, under the Tenancy info, this is the information given.
(My point that it is a countrywide company meant its a national company, not countrywide themselves)

I am simply asking as a prospective tenant if there really are fees that Letting Agents can charge in an underhanded way, somehow bypassing the newly established Tenancy Act. I’m of the understanding they cannot in a normal residential letting, however, these fees being listed as the fees under a residential lettings advertisement leads me to question otherwise. Therefore, I am simply seeking reassurance/ information. Call me ignorant if you like, it’s a new act and it seems almost too good to be true after years of forking out £1000s just to move home. But I’m not trying to be dishonest with my question..

Owain_Moneysaver

The Tenant Fees Act 2019 is a completely separate piece of legislation from other law affecting housing.

A tenancy can fall within the Tenant Fees Act 2019 and tenant fees will be banned, but not be a tenancy for other legislation, such as the Housing Act 1988.

As far as the Tenant Fees Act 2019 is concerned, a lodger's licence with a resident landlord is clearly a tenancy covered by the Act and tenant fees are banned. That does not make it a tenancy under the Housing Act or other legislation.

Perhaps Countrywide have misunderstood the legislation, or perhaps their fees list is intentionally misleading.

KcEliMa

Thank you Owain! That, I totally understood.

G_M

It's not a loophole. It's simply that not all tenancies fall within the remit of the new Act.

But whether a particular tenancy does or does not fall within the Tenant Fees Act is not dependant on a spurious decision by the letting agent, or the wording they put on their contracts, it depends whether the facts mean it falls within the definitions of the (various) acts eg the tenant fees Act itself, or the Housing Act (which defines an AST) etc.

If you give us


a) the terms and type of tenancy you are seeking and
b) a link to the agent's website,



we can tell you more.

System

KcEliMa wrote: »

Wow... to call me disingenuous is unfair..

As I’ve said, we’re looking at houses to rent. On Rightmove, under the Tenancy info, this is the information given.
(My point that it is a countrywide company meant its a national company, not countrywide themselves)

I am simply asking as a prospective tenant if there really are fees that Letting Agents can charge in an underhanded way, somehow bypassing the newly established Tenancy Act. I’m of the understanding they cannot in a normal residential letting, however, these fees being listed as the fees under a residential lettings advertisement leads me to question otherwise. Therefore, I am simply seeking reassurance/ information. Call me ignorant if you like, it’s a new act and it seems almost too good to be true after years of forking out £1000s just to move home. But I’m not trying to be dishonest with my question..

But you only chose to quote a small section of their advertised terms/fees when they clearly also advertise those that are also relevant to the new legislation so by doing this you were looking for an excuse to say a particular agency group were trying to exploit a loop hole when in actual fact they weren't.