tenancy fees
📖 What is tenancy fees? Meaning and definition
In the UK, tenancy fees refer to payments requested from prospective or current tenants, such as holding deposits or administration charges. The Tenant Fees Act 2019 plays a crucial role in defining what fees are permissible and what are prohibited. For instance, a holding deposit is a type of tenancy fee, and its repayment can be disputed if certain conditions, such as the disclosure of adverse information, are not met by the prospective tenant. If a tenancy does not proceed, there are specific rules governing whether the holding deposit must be repaid.
The Act also covers various types of agreements, including assured shorthold tenancies, licences, and student lets, ensuring that the protections against prohibited fees apply broadly. For example, an administration or handling fee, even if agreed upon by the applicant, can be ruled as a prohibited payment under the 2019 Act if it falls within the scope of regulated tenancy fees. This means that landlords and agents cannot simply charge any fee they wish, even if the tenant appears to consent.
The legislation aims to prevent landlords and agents from imposing excessive or hidden costs on tenants. The First-tier Tribunal often handles applications for the recovery of such fees, determining whether a payment is prohibited and should be refunded. It's important for self-represented litigants to understand that the nature of their agreement (e.g., licence vs. tenancy) might be challenged, but the Act often extends its provisions to cover a wide range of residential arrangements.
While the focus is often on initial fees, other charges related to occupancy, such as pitch fees for mobile homes, are also subject to review, though under different legislation like the Mobile Homes Act 1983. These fees can be reviewed for reasonableness, highlighting that not all payments associated with occupying a property are considered 'tenancy fees' under the same specific Act, but many are still subject to legal oversight.
📋 Requirements
- The payment must be in respect of a tenancy, licence, or student let.
- The fee must not be a prohibited payment under the Tenant Fees Act 2019.
- For holding deposits, repayment may be withheld if the applicant fails to disclose adverse information as per Schedule 2 of the Tenant Fees Act 2019.
📝 Procedure
- An applicant asserts that a prohibited fee was paid to a respondent.
- The applicant applies for an order for the recovery of the fee, often a holding deposit, pursuant to section 15 of the Tenant Fees Act 2019.
- The tribunal determines the application based on submitted documents if no oral hearing is requested.
- The tribunal decides whether the payment falls within the provisions of the 2019 Act and if it is a prohibited payment.
💡 Examples
- A prospective tenant paid a holding deposit of £403 for a rented property, but the tenancy did not proceed, leading to a dispute over the deposit's repayment.
- A student was charged a £300 handling/administration fee by a landlord for accommodation, which was later challenged as a prohibited payment under the Tenant Fees Act 2019.
- A landlord refused to repay a holding deposit because the prospective tenant failed to disclose relevant adverse information, as allowed by the Tenant Fees Act 2019.
- An application was made to recover a holding deposit after a tenancy did not proceed, with the tribunal reviewing whether the respondent was required to repay it.
📚 Legal basis
- The Tenant Fees Act 2019
- Mobile Homes Act 1983
❓ Frequently asked questions
What is a 'holding deposit' in the context of tenancy fees?
A holding deposit is a payment made by a prospective tenant to a landlord or agent to reserve a property while references and checks are carried out. The Tenant Fees Act 2019 sets out rules for its repayment if the tenancy does not proceed.
Can a landlord keep my holding deposit if I change my mind?
A landlord may not be required to repay a holding deposit if the prospective tenant fails to disclose adverse information, as specified in Schedule 2 of The Tenant Fees Act 2019, or if the tenant withdraws from the agreement.
Are 'administration fees' or 'handling fees' legal?
Under the Tenant Fees Act 2019, many administration or handling fees are considered prohibited payments and are therefore illegal, even if you agreed to pay them. The tribunal can order their return.
Does the Tenant Fees Act 2019 apply to student accommodation?
Yes, the Tenant Fees Act 2019 includes licences and lets to students within its provisions, meaning that prohibited fees cannot be charged for student accommodation.
What should I do if I believe I've been charged an illegal tenancy fee?
If you believe you have been charged a prohibited tenancy fee, you can apply to the First-tier Tribunal for an order for its recovery. You will need to provide evidence of the payment and explain why you believe it is prohibited.
Are pitch fees for mobile homes considered tenancy fees under the 2019 Act?
Pitch fees for mobile homes are reviewed under the Mobile Homes Act 1983, not the Tenant Fees Act 2019. While they are a type of occupancy fee, they fall under different legislation for review.