Latest News

Scottish Parliament Approves Budget

21 February 2019

Holyrood has voted yesterday (21 February 2019) to pass the Scottish Government’s Budget for the next financial year. Read More...

Client Accounting and the Annual Accountant Report – There Is Another Way

18 February 2019

So, you’ve refined your business idea, come up with a business plan, and your lettings agency is now in full swing. However, what you never anticipate in those daydream days of business building, is the amount of administration you will need to complete. Read More...

Tenant Fees Act passes in to law

12 February 2019

Following a long and enduring process, legislation banning most tenant fees in England received Royal Assent today. Read More...

Amendment made to Tenant Fees Bill

Tuesday 04 December 2018

In another attack on the sector the Government has announced an amendment to the Tenant Fees Bill, that will see security deposits capped at the equivalent of five weeks’ rent.

The cap will apply to all tenancies where the annual rent is less than £50,000. Properties garnering rents above £50,000 per annum will continue to be subject to a security deposit capped at the original six weeks’ rent.

Further amendments tabled by the Government clarify ‘default fees’ as charges for replacement keys or a respective security device, and late rent payments only.

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.

Another Government amendment seeks to include a new clause allowing 'payment of damages' as a permitted payment where the tenant has breached the terms of their tenancy agreement, or an agreement they have with their letting agent.

David Cox, ARLA Propertymark Chief Executive said: “Once again politicians are attacking the industry for their own purposes. Tenancy deposits have worked perfectly well for over a decade, and there is no basis in research that these amendments are necessary. This move will do nothing but push the most vulnerable in our society away from professional landlords and agents, and into the hands of rogue landlords and agents who will exploit them.”

The Bill will move to Report Stage in the House of Lords on Tuesday 11 December, where amendments will be voted on and the legislation will be further scrutinised line by line.

Moving forward, we will continue to support our members and provide additional resources as the legislation receives Royal Assent and comes into force.