tenant fees act 2019
📖 What is tenant fees act 2019? Meaning and definition
The Tenant Fees Act 2019, which came into force on 1st June 2019, prohibits most payments associated with a tenancy, other than rent and authorised deposits. This means that landlords and letting agents are generally prevented from charging tenants for various fees that were common before the Act was introduced. The Act applies to both landlords and letting agents, and the term 'tenant' includes licensees.
The Act specifically defines what constitutes 'prohibited payments' and 'permitted payments'. Permitted payments are outlined in Schedule 1 of the Act and include rent, a tenancy deposit, a holding deposit, and payments in the event of default. Other permitted payments cover variations, assignments, or novations of a tenancy, payments upon termination, and contributions towards Council Tax, utilities, television licences, and communications.
If a landlord or agent charges a tenant a prohibited payment, the tenant can apply to the First-tier Tribunal (Property Chamber) for recovery of that payment. The Tribunal has the authority to determine if a payment is prohibited and can order the landlord or agent to return the sum to the applicant. Cases often involve disputes over whether a payment, such as a holding deposit, falls under the definition of a prohibited payment or a permitted one.
For example, a tenant might seek the return of a payment if they believe it was a prohibited charge, such as an administration fee that is not explicitly listed as a permitted payment under the Act. The Tribunal will then assess the nature of the payment against the provisions of the Tenant Fees Act 2019 to make a decision.
📋 Requirements
- The payment must have been made in connection with a tenancy.
- The payment must not be explicitly listed as a 'permitted payment' under Schedule 1 of the Tenant Fees Act 2019.
- The application for recovery must be made to the First-tier Tribunal (Property Chamber).
📝 Procedure
- An applicant seeks a determination from the First-tier Tribunal that a payment is prohibited.
- The Tribunal issues directions, potentially requesting further information from the applicant.
- A hearing may be scheduled, which could be conducted by video.
- The Tribunal considers whether the payment is a prohibited payment for the purposes of the Tenant Fees Act 2019.
- The Tribunal issues a decision, which may include an order for the return of prohibited payments.
💡 Examples
- A tenant successfully applied to the First-tier Tribunal for the return of £730, which was deemed a prohibited payment under the Tenant Fees Act 2019.
- A landlord was found to have made an unlawful deduction that was challenged as a prohibited payment under the Act.
- A tenant sought recovery of a holding deposit, arguing it was a prohibited payment under Sections 15(3) and (5) of the Act.
- The Tribunal allowed a tenancy deposit under the Tenant Fees Act 2019 in a case concerning recovery of a prohibited payment.
📚 Legal basis
- Tenant Fees Act 2019
❓ Frequently asked questions
What kind of payments are prohibited by the Tenant Fees Act 2019?
The Act prohibits most payments associated with a tenancy, other than rent and specifically authorised deposits. This means many fees previously charged by landlords or agents, such as administration fees or referencing fees, are now unlawful.
What are 'permitted payments' under the Tenant Fees Act 2019?
Permitted payments include rent, a tenancy deposit, a holding deposit, and payments in the event of default. It also covers payments for tenancy variations, assignments, termination, and contributions towards Council Tax, utilities, TV licence, and communications.
What should I do if my landlord charges me a prohibited fee?
If you believe you have been charged a prohibited fee, you can apply to the First-tier Tribunal (Property Chamber) for the recovery of that payment. The Tribunal will assess your case based on the provisions of the Tenant Fees Act 2019.
Does the Tenant Fees Act 2019 apply to all types of tenancies?
The Act applies to most residential tenancies in England. The term 'tenant' also includes licensees, broadening its scope beyond traditional tenancy agreements.
How long do I have to recover a prohibited payment?
The excerpts do not specify a time limit for making an application to recover a prohibited payment. It is advisable to act promptly and seek clarification if you are unsure.
Can a landlord make deductions from my tenancy deposit under this Act?
The Act regulates tenancy deposits, but it does not prevent lawful deductions from a deposit. However, any deduction must be for a permitted reason, such as damage or unpaid rent, and not for a prohibited fee.
Do I need a solicitor to make a claim under the Tenant Fees Act 2019?
While you can represent yourself in the First-tier Tribunal, as seen in cases involving self-represented litigants, seeking advice from a qualified solicitor can help you understand your rights and the application process more clearly.