The Tenant Fees Bill will abolish most upfront fees for tenants in England and cap security deposits at the equivalent of six weeks’ rent. There is currently no cap on the level of fees that letting agents can charge in England although consumer protection legislation might apply in certain circumstances. We welcome the Bill and the Government’s intention to make private rented accommodation more accessible.
Key messages
- We welcome the Tenant Fees Bill and the Government’s intention to make private rented accommodation more accessible. Excessive letting agent fees are a concern for many tenants and councils, hampering access to the market, which in turn places pressure on housing of other tenures, including social housing.i
- The proposed ban on letting agent fees for tenants will bring clarity to a sector that has a powerful influence on the cost of renting. The current legal and regulatory system is out of date, and we welcome the ongoing reforms to reflect the changing reality of the private rented market.
- Local authorities will have responsibility for enforcing the ban in their areas. In order for councils to enforce the ban, it is vital that the Government provides sufficient resources and funding. This includes up-front funding to support activity on this issue, and a national, Government-led information campaign to make tenants and landlords aware of the new rules.
- Councils will want to take a proactive approach to compliance and enforcement, but local trading standards teams are under severe financial pressure. Since 2009, the number of trading standards officers has reduced by 56 per cent.ii We are therefore concerned about councils’ ability to undertake upfront work on this issue.
- We welcome the pre-legislative scrutiny report of the Housing, Communities and Local Government Committee. The report recognises the current funding model as offering a ‘perverse disincentive’ for councils to engage proactively and cooperatively with landlords and tenants.iii
- Councils will require clear and timely guidance from the Government in order to enforce the ban. This will help local authorities to bring about a consistent level of enforcement across the country, ensuring that there is a level playing field for tenants and letting agents throughout different areas.