space
 
 

You're on the UK site
change country
You are not logged in. Click here to login
 
Student Login <
Landlord Login <
Letting Agent Login <
Find Housemates Student Guides Advertise Blogs   follow us  
AFS Pinterest AFS facebook AFS Twitter AFS LinkedIn
 
 


 

Draft Tenant fees Bill


By Simon Thompson
 
     
On the 1st of November 2017, the government published the draft tenant fees bill. You can read the full document here https://www.gov.uk/government/publications/draft-tenants-fees-bill .

The purpose of this draft bill is to set out the Government’s approach to banning letting agents’ fees paid by tenants. As the bill is currently in draft form there is still some way to go before its contents become law. In terms of process it is worth noting;

- The proposal to ban fees was in the manifesto of all major political parties, so there is broad political support for the proposals

- The bill is in draft form, so there is still an opportunity to influence various aspects of it, particularly those elements that the government is still formally consulting on

£13 million per month

Philip Hammond announced the intention to introduce a ban on Letting agents’ fees which are paid by tenants back in November 2016. This follows concerns from some about the amount renters were required to pay in such fees – currently estimated at £13 million per month. It is fair to say that the aim of the Government here is to dramatically reduce costs to tenants.

The draft bill is the result of a period of consulting over the summer and it is important to note that it relates to England only.

What the government says that this bill will do

The bill is aimed at banning landlords or their agents from requiring any payment from tenants for granting, renewing or continuing their tenancy, with three exceptions;

- Rent

- Refundable tenancy and holding deposits

- Tenant default fees, for lost keys, late payments etc.

In its current form the ban also covers landlords or their agents requiring a tenant to pay for a service from a third party, such as for a reference check or similar service.

Deposit Capped

The intention set out in the draft bill is to cap tenancy deposits at no more than 6 weeks rent and holding deposits at no more than 1 week’s rent.

In this proposal, any holding deposit must be refundable. Furthermore it must be returned within 15 days if the landlord or agent decides not to take forward the tenancy. However, it can be retained if the tenant;

- Fails right to rent checks

- Provides false or misleading information

- Does not take forward the tenancy or do so in a timely manner

Once the tenancy is confirmed it is possible for the holding deposit to form part of the first month’s rent or be put towards the tenancy deposit.

Penalties and enforcement, with fines up to £30,000

In its current draft form, the bill includes

- The creation of a civil offence with a fine of up to £5,000, if it is found beyond reasonable doubt that the agent has charged a prohibited payment or if a holding deposit is not returned

- The creation of a criminal offence where a person has been fined or convicted of the same offence within a 5 year period, with civil penalties of up to £30,000 to be issued as an alternative to prosecution

- The requirement for Trading Standards to enforce the ban and make provision for tenants to be able to recover unlawfully charged fees

Also included in this month’s draft is the proposal to amend the consumer rights act so that the letting agent transparency requirements will also apply to property advertising portals, such as Right Move and Zoopla.

Should all aspects of the bill move forward as currently positioned, this would mean such websites would need to display the following on relevant property ads

- Any permitted Letting Agent fees

- Which property redress scheme the agent was part of

- The relevant client money protection scheme

Forward facing

Finally it is important to note that if and when the bill is introduced, it will not be retrospective so at present it is not envisaged that these changes will apply to existing tenancies.

The Student Perspective

The implications of the draft bill are very significant for the sector. However, our research has indicated that most student specialist agents and landlords have started to plan for it some time ago.

Currently opinion is still split between those who feel it will not have too much impact and those that do feel the impact will result in increased rents being passed onto students. Only time will tell how this plays out, however, the student accommodation sector has traditionally been very innovative in the way that it responds. We have already seen some of the hall providers remove the requirement for students to pay any form of deposit or booking fee, to make the online booking experience as simple as possible.

We will be collecting further feedback and comment from our landlords, agents and halls partners in our December survey, but in the meantime please do get in touch if you have any questions or comments.

simon@accommodationforstudents.com

 
 
Landlord Guides
 
Welcome to our Student Landlord
Guides filled with great insight and
information from our student
ambassadors.
 
Search Blog
 
 
Search by Date
 

February 2019

January 2019

October 2018

September 2018

August 2018

July 2018

June 2018

May 2018

April 2018

March 2018

February 2018

January 2018

December 2017

November 2017

October 2017

September 2017

August 2017

July 2017

May 2017

April 2017

March 2017

February 2017

January 2017

December 2016

November 2016

October 2016

September 2016

August 2016

July 2016

June 2016

May 2016

April 2016

March 2016

February 2016

January 2016

November 2015

August 2015

July 2015

June 2015

April 2015

March 2015

February 2015

January 2015

November 2014

October 2014

September 2014

August 2014

July 2014

June 2014

May 2014

April 2014

March 2014

February 2014

January 2014

December 2013

November 2013

October 2013

September 2013

August 2013

July 2013

June 2013

May 2013

April 2013

March 2013

February 2013

January 2013

December 2012

November 2012

October 2012

September 2012

August 2012

July 2012

June 2012

May 2012

April 2012

March 2012

February 2012

January 2012

November 2011

October 2011

September 2011

August 2011

July 2011

June 2011

May 2011

April 2011

March 2011
 
 
 
 
 
 
     
Average Tenancy Deposit Cost Revealed
 

Average Tenancy Deposit Cost Revealed

The average tenancy deposit value across the UK has risen over the past year, according to The Dispute Service (TDS).

In a report, the organisation says that the average value of tenancy deposits and the number

     
Posted by on 14/02/2019 12:28:59
Read More

     
Economic Uncertainty Boosts Rental Home Demand
 

Economic Uncertainty Boosts Rental Home Demand

Economic and political uncertainty is boosting demand for rental properties, one index reveals.

According to HomeLet, the private rental sector is offering greater security and certainty for those who a

     
Posted by on 14/02/2019 12:23:15
Read More

     
Landlords Hit By A Decline In Tenant Numbers
 

Landlords Hit By A Decline In Tenant Numbers

For the first time in more than 10 years, the total amount of rent being handed to landlords has fallen, a survey reveals.

The findings from real estate firm Hamptons International reveals that fewer peop

     
Posted by on 14/02/2019 12:05:11
Read More

     
Property Professionals Looking To Expand Portfolios
 

Property Professionals Looking To Expand Portfolios

Most property professionals in the UK are looking to expand their portfolios this year, one survey reveals.

The survey was carried out by MT Finance which found that affordability issues and politi

     
Posted by on 08/02/2019 09:59:06
Read More

     
Big Rise In Landlord Numbers Leaving The Sector
 

Big Rise In Landlord Numbers Leaving The Sector

Along with rent rises for tenants, there's been a big jump in the number of landlords who are leaving the rental market, according to a report.

The findings from Arla Propertmark are based on December

     
Posted by on 08/02/2019 09:53:32
Read More

     
The PRS Trends That Will Dominate The Sector Revealed
 

The PRS Trends That Will Dominate The Sector Revealed

A new report reveals the trends that will dominate the UK's private rental sector over the next few years.

The report has been compiled by real estate firm Knight Frank and it makes for interest

     
Posted by on 08/02/2019 09:45:33
Read More

     
What Student Tenants Are Looking For
 

What Student Tenants Are Looking For

Landlords looking to exploit the student tenant market need to understand what students are looking for in a property, one organisation says.

To help those buy to let landlords who have bought properties close

     
Posted by on 01/02/2019 10:17:57
Read More

     
Landlords Claim Billions In Tax Relief
 

Landlords Claim Billions In Tax Relief

The UK's landlords claimed a record amount in tax relief last year despite new fiscal regulations, one lettings agency says.

According to ludlowthompson, landlords claimed £17.7 billion in relief, which is up

     
Posted by on 01/02/2019 10:13:45
Read More

     
Most Prs Landlords 'Still Make A Profit'
 

Most Prs Landlords 'Still Make A Profit'

Despite regulatory changes, most landlords in the private rental sector are making a profit, a new report claims.

The report has been published by BM Solutions who say that 88% of those landlords it surveye

     
Posted by on 01/02/2019 10:05:40
Read More

     
Landlords Are Facing A 'Watershed' With Tax Bills
 

Landlords Are Facing A 'Watershed' With Tax Bills

Landlords are facing a 'watershed' this month because of tax changes being reflected in their tax bills for the first time, one trade association warns.

The Intermediary Mortgage Lenders' Associatio

     
Posted by on 24/01/2019 14:44:32
Read More

     
Landlords Opting For 5-Year Btl Fixes
 

Landlords Opting For 5-Year Btl Fixes

Landlords are increasingly opting for five-year fixed rate buy to let products, one index has revealed.

The data from Mortgages for Business highlights that in the last quarter of 2018, 84% of landlords had opt

     
Posted by on 24/01/2019 14:39:40
Read More

     
The Number One Location For Property Investment
 

The Number One Location For Property Investment

A unique algorithm has ranked 172 BTL locations in the UK to find out where the best area is for buy to let property investment.

The analysis by One and Only Pro, a property investment portal, utilised

     
Posted by on 24/01/2019 14:30:52
Read More

     
UK Property Investment Remains Positive
 

UK Property Investment Remains Positive

The sustained demand for property and growing rents means UK property investment 'remains positive' for investors, according to one index.

The findings from Homelet reveal that in the year to December 2018, ave

     
Posted by on 16/01/2019 13:43:51
Read More

     
London's Landlords Worse Off Because Of Brexit
 

London's Landlords Worse Off Because Of Brexit

Since the vote to leave the European Union in June 2016, London's landlords have been left worse off, says one index.

The data from Landbay highlights that landlords may have seen rent growth being 2.

     
Posted by on 16/01/2019 13:39:04
Read More

     
How Long To Sell A Btl Property?
 

How Long To Sell A Btl Property?

For those buy to let landlords in the UK looking to offload their property, a new report highlights how long it will take to sell it.

The findings have been published by a specialist online agency that has looked at

     
Posted by on 16/01/2019 13:32:19
Read More

     
Fewer Tenants See Rent Rises
 

Fewer Tenants See Rent Rises

Fewer tenants saw their rents rise in November, the lowest level since February, new data reveals.

The findings from Arla Propertymark highlights that November was the third consecutive month in which the number of rent

     
Posted by on 09/01/2019 16:28:32
Read More

     
Property Investment In The North Picks Up Speed
 

Property Investment In The North Picks Up Speed

Property investors in the north of England are enjoying some of the highest percentage returns in the UK for their investment, an analysis reveals.

The findings from Your Move highlights that the hig

     
Posted by on 09/01/2019 16:21:50
Read More

     
Big Rise In Middle Age Tenant Numbers
 

Big Rise In Middle Age Tenant Numbers

There has been a big rise in the number of middle age tenants renting a home in the UK, a survey has revealed.

Intus Lettings has found that many middle-aged workers cannot afford to buy their first home or hav

     
Posted by on 09/01/2019 16:17:04
Read More

     
New Guidance On Hmo Room Size Regulations Unveiled
 

New Guidance On Hmo Room Size Regulations Unveiled

The new guidance covering minimum room size regulations for HMOs has been welcomed by one landlords' association.

The guidance is aimed at councils and has been published by the Ministry of Housing

     
Posted by on 07/01/2019 10:22:43
Read More

     
2019 Will Be 'Difficult' For Landlords
 

2019 Will Be 'Difficult' For Landlords

The UK's letting agents say that 2019 will be 'difficult' for landlords, according to a survey.

The findings from ARLA Propertymark highlight that the next 12 months could be a mixed year for property investor

     
Posted by on 07/01/2019 10:03:40
Read More

     
What 2019 Has In Store For Landlords
 

What 2019 Has In Store For Landlords

After a year that saw a flurry of regulatory and tax changes, 2019 will offer landlords little respite from more upcoming changes, experts say.

Among the moves to affect the buy to let sector will be new client m

     
Posted by on 07/01/2019 09:55:21
Read More

     
Most Students Get On With Their Landlord
 

Most Students Get On With Their Landlord

Despite the commonly held view that landlords exploit student tenants, a survey highlights that students are happy with the services and living conditions being provided by landlords.

The research from a stud

     
Posted by on 02/01/2019 14:55:17
Read More

     
Areas for the UK's fastest growing rents revealed
 

Areas for the UK's fastest growing rents revealed

The areas for the UK's fastest-growing rents have been revealed in a survey with Edinburgh topping the list.

According to Landbay, the average annual rent in the Scottish city rose by 4.63% this year

     
Posted by on 02/01/2019 14:49:07
Read More

     
Landlords Are Increasingly Selling Up
 

Landlords are increasingly selling up

Landlords in the UK are selling up their buy to let investments and leaving the sector but it's not as many as has been feared.

The findings from franchise letting agents Belvoir shows landlords are increasingly

     
Posted by on 02/01/2019 14:41:01
Read More

     
The Uk's Student Accommodation Sector 'Is Still Booming'
 

The UK's student accommodation sector 'is still booming'

The student accommodation sector in the UK is still booming despite Brexit, says one leading real estate firm.

The student property team at Knight Frank says that in 2019, more than 29,000 pur

     
Posted by on 02/01/2019 14:18:12
Read More

     
The Days Of Low Btl Rates 'Numbered'
 

The days of low BTL rates 'numbered'

Landlords will be seeing the end of rock-bottom buy to let mortgage interest rates with one expert saying their days may be ‘numbered’.

While BTL landlords have more choice today than they have had before when ar

     
Posted by on 02/01/2019 14:15:01
Read More

     
Sharp Slowdown In Rental Market Activity
 

Sharp Slowdown In Rental Market Activity

A sharp slowdown in rental market activity has been recorded in the run-up to Christmas, new data reveals.

The property activity index from Agency Express highlights that the proportion of properties 'to let'

     
Posted by on 02/01/2019 14:09:26
Read More

     
Landlords will be deterred by three-year tenancies
 

Landlords will be deterred by three-year tenancies

The prospect of the Government introducing mandatory three-year tenancies will see 32% of landlords being put off from investing in new rental homes, a survey reveals.

The findings from Paragon reve

     
Posted by on 11/10/2018 17:07:41
Read More

     
Student landlords are forced into making deductions
 

Student landlords are forced into making deductions

Growing numbers of student landlords are having to deduct money from their tenants' deposits when the students leave their rental property at the end of their academic year, research reveals.

Accor

     
Posted by on 11/10/2018 16:56:05
Read More

     
Tax break for landlords selling-up to tenants
 

Tax break for landlords selling-up to tenants

Landlords could be offered financial incentives by the government for selling their property to a long term tenant, media reports suggest.

It's been mooted that the upcoming Autumn Budget may offer a tax

     
Posted by on 11/10/2018 16:49:03
Read More

     
Warning over HMO tenants facing eviction or rent rises
 

Warning over HMO tenants facing eviction or rent rises

A landlords' association is warning that thousands of tenants who live in shared houses are facing rent rises or eviction because of rule changes.

The warning comes from the National Landlords'

     
Posted by on 03/10/2018 10:06:00
Read More

     
No sign of mass BTL landlord exodus
 

No sign of mass BTL landlord exodus

Concerns that regulatory and tax changes could lead to an exodus of buy to let landlords from the sector may have been premature, say researchers.

The findings from Foundation Home Loans reveals that a year after

     
Posted by on 03/10/2018 10:01:22
Read More

     
Tenant gripes over landlords revealed
 

Tenant gripes over landlords revealed

Among the biggest gripes for tenants are landlords hitting them with 'out of the blue' rent rises along with being slow to repair faults, a survey has revealed.

Researchers from wallpaper firm Graham and Brown q

     
Posted by on 03/10/2018 09:45:49
Read More

     
How much tenants will pay for furnished homes revealed
 

How much tenants will pay for furnished homes revealed

Landlords can charge tenants up to 21% more per month for renting a two bedroom furnished flat than they can for an unfurnished property, research has revealed.

The findings from OnTheMarket, a

     
Posted by on 26/09/2018 11:04:40
Read More

     
Landlords call for Rent to Rent to be suspended
 

Landlords call for Rent to Rent to be suspended

Landlords are calling for the Government's Right to Rent scheme to be suspended as the Home Office reconvenes its stakeholder panel.

It's doing so after appeals from the Residential Landlords' Associat

     
Posted by on 26/09/2018 10:47:22
Read More

     
New Section 21 rules cause landlord confusion
 

New Section 21 rules cause landlord confusion

New Section 21 rules are causing confusion among letting agents and landlords, says one law expert.

The new rules come into effect from October for tenancies created before October 2015.

Unde

     
Posted by on 26/09/2018 10:36:03
Read More

     
The best university for buy to let locations revealed
 

The best university for buy to let locations revealed

With growing numbers of property investors looking to the student accommodation sector for its impressive returns, knowing where to invest can be an issue and a new survey may help.

Property webs

     
Posted by on 19/09/2018 14:33:39
Read More

     
Rents continue to rise across the UK
 

Rents continue to rise across the UK

The latest data on rents being paid across the UK has delivered good news for landlords as rents have risen in all regions.

The findings from HomeLet highlight that the average rent is now £947 in the UK which is

     
Posted by on 19/09/2018 14:14:45
Read More

     
Tenants Increasingly Opt To Rent Long-Term
 

Tenants increasingly opt to rent long-term

Growing numbers of tenants are adopting a long-term view when renting their home with more renters wanting to renew their current contracts, research reveals.

The findings from Hamptons International highli

     
Posted by on 19/09/2018 14:09:06
Read More

     
Buy to let landlords split over futures
 

Buy to let landlords split over futures

Buy to let landlords in the UK are split over the future of the sector with 44% looking to sell up, a report reveals.

However, according to Octopus Choice they say that 56% of buy to let investors are looking

     
Posted by on 12/09/2018 10:27:21
Read More

     
Landlords look forward to rent growth
 

Landlords look forward to rent growth

Around a quarter of landlords in the UK say they are expecting rents to rise over the next six months, a report reveals.

The research was carried out by buy to let consults BDRC who also found that 41% of landlo

     
Posted by on 12/09/2018 10:23:34
Read More

     
Property investment still attractive to Brits
 

Property investment still attractive to Brits

A surprising number of Brits are looking to invest in property this year, a survey has revealed.

The findings from Sainsbury's Bank Mortgages also highlights that most landlords in the UK do not give up

     
Posted by on 12/09/2018 10:14:16
Read More

     
Top agency says landlords are being forced to quit
 

Top agency says landlords are being forced to quit

One of the UK's leading letting agents says the government is forcing more landlords to quit the rental sector because of punitive tax policies and increasing legislation.

Belv

     
Posted by on 30/08/2018 13:43:33
Read More

     
As landlords leave the BTL sector, rental demand increases
 

As landlords leave the BTL sector, rental demand increases

As landlords begin leaving the UK's buy to let sector, rental demand has hit its highest level this year, figures reveal.

According to Arla Propertymark, the number of prosp

     
Posted by on 30/08/2018 13:34:29
Read More

     
Landlords' day jobs revealed
 

Landlords' day jobs revealed

The most common day jobs for landlords have been revealed by researchers with office admin roles taking top spot.

While many landlords will not have their property investment as

     
Posted by on 30/08/2018 13:32:59
Read More

     
BTL Mortgage Brokers Say Business Will ‘Stabilise’
 

BTL mortgage brokers say business will ‘stabilise’

Most mortgage intermediaries are expecting levels of landlord business to stabilise over the next year, one index reveals.

Paragon's Financial Adviser Confidence Tracking Index found that 65% of bro

     
Posted by on 28/08/2018 09:51:08
Read More

     
BTL Landlords Begin Leaving The Market
 

BTL landlords begin leaving the market

Growing numbers of landlords are leaving the UK's buy to let market after tougher borrowing conditions and tax changes have taken effect.

The warning comes from the One Savings Bank's sales director John Eastga

     
Posted by on 28/08/2018 09:36:42
Read More

     
Student Accommodation Is Tops For Yields
 

Student accommodation is tops for yields

For landlords facing dwindling profits, the best yields in any UK town or city is for those with a high student population, research reveals.

The findings from Totally Money highlight that in university citie

     
Posted by on 28/08/2018 09:33:22
Read More

     
Locations where the UK's most vulnerable landlords reside are revealed
 

The UK's most vulnerable landlords are to be found in Chichester, research has revealed.

The findings from Gatehouse Bank show that landlords in the city are facing 269 days, on average, without a tenant in their property.

The study set out to find wh

     
Posted by on 14/08/2018 15:21:19
Read More

     
ls media turning landlords away from private rental housing?
 

Research has revealed that growing numbers of landlords are becoming increasingly unhappy with the negative portrayal of landlords on TV.

Despite providing homes for millions of tenants, two in three landlords say they have been demonised by TV shows which is for

     
Posted by on 14/08/2018 15:07:58
Read More


View more

 
Are you an existing landlord?
Click here to log into your account

Are you new to AFS, click here to find out more information

LinkedIn twitter YouTube Facebook

usa flag ireland flag australia flag canada flag france flag spain flag germany flag italy flag southafrica flag india flag russia flag japan flag china flag