Tenant Fees Bill - Update

4/12/2018 6:57 PM

Another amendment has been made today to the proposed Tenant Fees Bill, meaning that security deposits will be capped at 5 weeks rent instead of the originally agreed 6 weeks. Tenancies with an annual rent in excess of £50,000 will still retain the original cap of 6 weeks rent. The government further clarified that 'default fees' will be limited to missed rental payments, or replacement of lost keys/security devices.

A late rent payment cannot be charged unless 14 days have passed since the tenant was due to pay their full rent and they have failed to do so. When considering each day the rent remains unpaid, late rent charges will be capped at 3% above the Bank of England base rate (currently at 0.75%); any charge above this will be classed as a prohibited payment.

The government are also seeking to include an amendment that will add a clause permitting 'payment of damages' when a tenant breaks their lease conditions, or an agreement they have with their agent.

The bill will pass through the House of Lords on the 11th December where it will be further scrutinised.

To read the government's press release, click here.

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