Tenant Fees Bill Set to Save Renters £160 Million a Year!
Parliament Bans Sneaky Letting Fees
The Tenant Fees Bill has smashed through Parliament and is now heading for Royal Assent. From 1 June, landlords and letting agents will be banned from charging unfair fees that have cost renters a whopping £160 million every year.
Citizens Advice, which has campaigned hard for this ban for over a decade, worked closely with MPs from all sides to ensure the Bill is watertight. They clamped down on the sneaky ‘default fees’ loophole, which would have let agents slip extra charges into tenancy contracts.
Deposit Limits Slashed – A Win for Renters
The Bill also tackles the expensive upfront costs of renting. Citizens Advice pushed to cut deposits from six weeks’ rent down to four. The government compromised, settling on a five-week cap – still a big saving for renters across the UK.
What Renters Pay From June
- Only deposits (max five weeks’ rent) and advance rent are allowed at move-in.
- All other hidden fees? Banished.
With 4.7 million households renting privately, the new law will bring massive relief to millions enjoying private rental homes, the second largest housing sector after ownership.
Citizens Advice: Thousands Helped with Fee Problems
Last year alone, Citizens Advice supported 59,000 private renters. They tackled 2,100 disputes over letting fees and 3,400 cases about deposit or rent advance costs.
“This is a landmark moment for the millions of people who rent privately,” said Gillian Guy, Chief Executive of Citizens Advice. “For too long, families and renters have been forced to fork out hundreds of pounds in unfair fees every time they moved home. We look forward to working with the government to give renters a stronger hand in a market where they currently have little bargaining power.”
