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.
Concerns have been voiced by the industry following an announcement made by the government relating to the abolition of AST'
We will finally have a regulator with the power and funding to be able to truly increase standards and drive out rogue agents.
Social and private landlords (or agents) will now be required to ensure that a property and its common areas are fit for human habitation.
There are many things to consider when renting out a property. If in doubt, employ an ARLA Propertymark agent to look after your property.