The Tenant Fees Bill sets out the government’s approach to banning letting fees paid by tenants in the private rented sector and capping tenancy deposits in England. The aim of the Bill is to reduce the costs that tenants can face at the outset, and throughout, a tenancy, and is part of a wider package of measures aimed at rebalancing the relationship between tenants and landlords to deliver a fairer, good quality and more affordable private rented sector.
Tenants will be able to see, at a glance, what a given property will cost them in the advertised rent with no hidden costs. The party that contracts the service – the landlord – will be responsible for paying for the service, which will help to ensure that the fees charged reflect the real economic value of the services provided and sharpen letting agents’ incentive to compete for landlords’ business.
Introduction of the Tenant Fees Bill follows pre-legislative scrutiny of the draft Bill, which was conducted by the Housing, Communities and Local Government Select Committee. The Select Committee published their recommendations on 29 March 2018 and agreed that the Bill has the potential to save tenants in the private rented sector hundreds of pounds as well as making the market more transparent.