Renters to save hundreds as letting fees banned Private renters are set to save hundreds of pounds as a new law banning letting fees comes into force in England. Citizens Advice reports that some £234m has been paid out in letting fees since the government committed to outlawing them in November 2017.The ban has now finally come into force. The Tenant Fees Act means renters will no longer have to pay fees that add up to £13m every month in England, meaning potential savings of hundreds of pounds for individuals and families who can no longer be charged for simply looking at a property, setting up a tenancy, or undergoing a credit check. Citizens Advice is hoping more laws will follow to further aid renters, including a reduction in the amount of cash required for a deposit from six weeks of rent to five weeks. What does this mean if you're a renter in England?:: Holding deposits are capped at one week's rent:: Security deposits are capped at five weeks' rent, or six weeks if the annual rent is above £50,000:: Changing the tenancy will normally be capped at £50 or "reasonable costs":: You can't be charged for looking around a property:: You can't be charged for setting up a tenancy, eg for referencing or credit checks:: You can't be charged for check-out. If landlords or agents are found to be in breach of these rules, they could be fined £5,000.Renters must still pay their rent, any bills included in the tenancy such as council tax , the refundable deposit, the refundable holding deposit, a capped amount for changes to the tenancy, defaults by the tenant eg late rent payment, lost keys , and if the tenant chooses to move out early. However, fees for late rent payments have also been capped. Those renters who have signed a tenancy agreement before 1 June will have to honour any fees previously agreed upon until 31 May 2020. After that date, fees covered by the Act do not need to be paid even if included in the tenant's existing agreement. Gillian Guy, chief executive of Citizens Advice, said: "The end of these uncompetitive and unfair letting fees is a real win for renters. "The new law means families and other renters don't have to hand over hundreds of pounds every time they move home. "We look forward to working with the government to further strengthen the hand of renters in a market where they have little bargaining power. "Letting fees are already banned in Scotland. They are still legal in Wales and Northern Ireland - but the fees are set to be banned in Wales from September. Thanks for watching, Hit that like button, and do subscribe, to get notified on upcoming videos
Renters to save hundreds as letting fees banned Private renters are set to save hundreds of pounds as a new law banning letting fees comes into force in England. Citizens Advice reports that some £234m has been paid out in letting fees since the government committed to outlawing them in November 2017.The ban has now finally come into force. The Tenant Fees Act means renters will no longer have to pay fees that add up to £13m every month in England, meaning potential savings of hundreds of pounds for individuals and families who can no longer be charged for simply looking at a property, setting up a tenancy, or undergoing a credit check. Citizens Advice is hoping more laws will follow to further aid renters, including a reduction in the amount of cash required for a deposit from six weeks of rent to five weeks. What does this mean if you're a renter in England?:: Holding deposits are capped at one week's rent:: Security deposits are capped at five weeks' rent, or six weeks if the annual rent is above £50,000:: Changing the tenancy will normally be capped at £50 or "reasonable costs":: You can't be charged for looking around a property:: You can't be charged for setting up a tenancy, eg for referencing or credit checks:: You can't be charged for check-out. If landlords or agents are found to be in breach of these rules, they could be fined £5,000.Renters must still pay their rent, any bills included in the tenancy such as council tax , the refundable deposit, the refundable holding deposit, a capped amount for changes to the tenancy, defaults by the tenant eg late rent payment, lost keys , and if the tenant chooses to move out early. However, fees for late rent payments have also been capped. Those renters who have signed a tenancy agreement before 1 June will have to honour any fees previously agreed upon until 31 May 2020. After that date, fees covered by the Act do not need to be paid even if included in the tenant's existing agreement. Gillian Guy, chief executive of Citizens Advice, said: "The end of these uncompetitive and unfair letting fees is a real win for renters. "The new law means families and other renters don't have to hand over hundreds of pounds every time they move home. "We look forward to working with the government to further strengthen the hand of renters in a market where they have little bargaining power. "Letting fees are already banned in Scotland. They are still legal in Wales and Northern Ireland - but the fees are set to be banned in Wales from September. Thanks for watching, Hit that like button, and do subscribe, to get notified on upcoming videos
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