The Tenant Fees Act 2019 came into force on 1 June 2019.
Please review the article written by my colleague Richard Bagwell as to the provisions of the Act.
Whilst of immediate importance and impact to those letting properties from 1 June 2019 the Act does have consequences for older tenancies.
The immediate changes
Shortly before midnight on 31 May, the government released amendments to two key documents.
As yet there is not an amended Claim Form. We should, however, expect one to be introduced before the 6 month anniversary of the legislation.
When will the legislation effect older tenancies?
The new Form 6A must be used for all notices given from 1 June onwards regardless of when the tenancy started. Failure to do so will render the notice invalid and any possession application issued as a result will be dismissed. This will cause delay and the expense of a further court fee and could include a costs order against the Landlord.
How to Rent must be provided not only at the start of a tenancy but in the event that any further tenancy is entered into, for example, a new fixed term. So is relevant for landlords providing replacement tenancies, this is specifically dealt with in the Act. Again, the failure to have served the correct guide will invalidate an S21 notice.
As we have seen with other measures introduced as part of the Government’s private rental sector strategy there are formal enforcement provisions, but in the writer’s opinion, the “real” enforcement remains the impact on the availability of the S21 possession route.
Costs
The impact study published ahead of the Bill provided various figures from different organisations as to the level of fees being paid. These included a mean of £223 to a submission that 1 in 7 renters paid over £500 in fees.
Landlords letting through agents should have already received correspondence advising of their updated fee structures, introduced as a result of the Act.
What next?
Landlords should note that the legislation, due to the amended documentation published, effectively impacts on all tenancies immediately and should review any stores of documents held to ensure that out of date forms are not retained and used in error.
The Act does not just relate to fees charged at the commencement of a tenancy but to all charges save those permitted under the Act. Charges that might normally be applied to vacating tenants will not be permitted when the tenancy was renewed on or after 1 June and in relation to all tenancies from 1 June 2020.