Dealing with the Tenant Fee Ban

30th May 2019


Next month sees the introduction of a new ruling which will affect both landlords and tenants, this is the Tenant Fee Ban.

From 1st June 2019, the law will forbid Letting Agents and Landlords charging tenant fees in England, with the overall aim of reducing the costs that tenants may have to face at the outset, and throughout a tenancy.

From this announcement, speculation has arisen about how Letting Agents are going to combat this pending change and how this will impact on both landlords and their properties.

We are proud to say that these changes will have minimal effect for our existing and future clients and that as a landlord, they will not be affected. The new rules will benefit both landlord and tenant.

Estate agents that follow best practice have been ahead of the change for quite some time and make no unnecessary charges to tenants. If landlords and their agents have followed this code of practice, they will certainly not lose out. Currently, there are many agencies who not only the landlord charge for the administration of setting up a tenancy, but they also charge the tenants. In addition, there are frequently other add-ons, which incur a cost for both the tenant and the landlord.

Sarah Wright, Manager of Residential Lettings for H&H King says of the Tenant Fee Ban:

“We have always had a very simple fee structure for our landlords, and the only charge we put to our tenant’s is at the application stage where we carry out formal credit checks and referencing. This is solely because we use an external referencing company for these stringent and vital checks.

“Going forward, the referencing will of course still be carried out to the highest standard, but as an Agent we will absorb the cost of doing this as we really do feel that this is an essential element of letting a property.

“Currently there are also considerable discussions taking place in relation to rental values increasing, and there is talk of Letting Agents charging higher set up fees to their landlords. Who knows what the future holds and what will happen on these fronts? Going forward, I want to reiterate to our landlords and our tenants, that H&H King will not be penalising them for the sake of a new legislative change that is out of everyone’s control”, concluded Sarah.


For more information regarding Tenant Fee Ban you can visit here.