Further amendments were announced yesterday to the Tenant Fees Bill as it passes through the House of Lords this month, before it becomes law in April next year. It was confirmed that the Government will cap security deposits held against properties at five weeks’ rent for tenancies under £4,166pcm or £50,000pa. Default fees chargeable to tenants will also now be limited to just the costs of replacing lost keys or recouping late rent.
The amendments have prompted a furious response in statements from the National Landlords Association, Association of Residential Letting Agents and Residential Landlords Association as it is feared these amendments to the Bill will cause a further exit of investment landlords from the market, leaving an even shorter supply of rental property than at the current time (which is already low).
However, housing secretary James Brokenshire was adamant that the new Tenant Fees Bill will have a positive effect on tenants and save them £64 million during the first year after the legislation becomes law. (Provided, of course, that supply does not drop, causing rents to rise).
Oasis Lettings Manager, Liz Gamlen responded:
“Legislative change like this makes it all the more crucial for landlords to choose a letting agent who will look after their interests by doing thorough reference checks on prospective tenants to minimise risk of damage or unpaid rent at the end of the tenancy. At Oasis, we are not going to respond to the upcoming Tenant Fee Ban by cutting corners and advising our landlords to accept quality compromises, we will remain as dedicated as ever to looking after our clients.”
To discuss further the details of the Tenant Fee Bill and ensure you are ready for the law when it comes into force next year, call Liz on 01784 441818 or email her here.
4 Clarence Street, Staines-upon-Thames, TW18 4SP
