|Posted on 9 February, 2019 at 7:35|
The introduction of a ban on fees charged by landlords and letting agents looks set to finally become law on June 1st this year, the government has announced.
Following it's third reading in the House of Lords, the Tenant Fees Bill is likely to receive Royal Assent in the coming months.
Speaking to The Lords, Lord Bourne of Aberystwyth said: "We need to enable agents and landlords following Royal Assent to become compliant, but we intend for the provisions to come into force on June 1st 2019.
"This would mean the ban on letting fees would apply to all tenancies signed after this date".
The new law will not just mean a ban on letting fees, but also the majority of other upfront fees payable by tenants to rent a property in England.
There will also be a cap on the amount of refundable deposit a tenant would be required to pay to the value of five weeks' rent as well as a cap on the amount of holding deposit a tenant will be required to put down to secure a property to the value of one week's rent.
The government believes the Bill will make renting in England fairer and more affordable for tenants by reducing the costs at the outset of the tenancy, at the same time as improving transparency in the private rental market.
David Cox, Chief Executive of ARLA Propertymark, said: "With the Tenant Fees Bill completing it's passage through the House of Lords, it appears the Tenant Fees Ban will come into force on June 1st 2019.; subject to parliamentary scrutiny in the House of Commons.
"This now gives agents the legal certainty they need to prepare for a post tenant fees ban world. To learn about the intricacies of the legislation, we encourage agents to come to our regional meetings".