Fees ban: MPs announce further proposals to protect t...

MPs have proposed a series of amendments to the Tenant Fees Bill as part of its Report Stage and Third Reading in the House of Commons.

Yesterday it was revealed that the Bill will include a new default fee provision which will only allow agents and landlords to recover 'reasonable incurred costs' for minor damages.

Evidence of these costs will have to be provided to the tenant before agents or landlords can impose any charges.

The Department for Housing, Communities and Local Government says this will put a stop to 'tenants being charged hundreds of pounds for a damaged item that actually only costs a few pounds to replace'.

It gives the example of tenants being charged £60 by agents to replace smoke alarms which the local council would provide for free.

A further amendment tabled yesterday is a move to reduce the timeframe in which agents and landlords have to pay back any fees that have been deemed to be charged unlawfully to 7-14 days.

"Tenants across the country, whatever their income, should not be hit with unfair costs by agents or landlords," commented MP Rishi Sunak in an official government statement.

"This government is determined to make sure our housing market works and this new provision in the Tenant Fees Bill will make renting fairer and more transparent for all."

Speaking in the House of Commons yesterday, Conservative MP and founder of franchise agency Hunters, Kevin Hollinrake said the legislation 'still has flaws'.

He argued that it could hinder landlords if, for example, a tenant loses a key and a payment needs to be made for a company to come out and let the tenant in.

Hollinrake said these charges should not be incurred on landlords and letting agents, and a distinction between fees and lawful charges should be clarified as part of the Bill.

“We’re disappointed but unsurprised the Tenant Fees Bill has passed the House of Commons. Over the summer, we worked with Daniel Kawczynski MP on his amendment to allow agents to charge up to £300," says David Cox, chief executive of ARLA Propertymark.

"Although the amendment was unsuccessful, this shows that members involved in ARLA Propertymark’s campaign have helped MPs understand the unintended consequences of the tenant fee ban; with some MPs listening to the legitimate concerns of the industry."

"As the Bill moves into the House of Lords we will continue working to ensure Parliamentarians understand the impact the ban will have on the whole private rented sector," he says.

The Labour Party also proposed amendments to the Bill - both of which were rejected. It called for a loophole which allows landlords to charge tenants significant fines if they break their tenancy agreements to be closed and for the £5,000 cap on landlord fines to be removed.

"Labour’s changes would ensure that landlords and agents cannot get around the bill by sneaking unfair fees into tenancy agreements and help make funding available to catch those who don’t play by the rules," said Melanie Onn, Labour’s shadow housing minister.

S l
07 September 2018 09:29 AM

you are right of course. the fire brigade would fit it for free to homes. not for landlord, when it comes to landlord, everyone wanted to get a piece of money because they think landlord are raking it in big time.

S l
07 September 2018 09:59 AM

you are lucky. in bath, they wanted to do more revenue income and if you look closely a lot of department actually create new rules to create jobs for themselves and get promotion at landlord expense. otherwise they wont have anymore work to do , do they once all licence been sorted and had to wait another 5 years to do more. seem to be better being on payroll than to save money and try to make a living from it if cant find a job.

S l
22 September 2018 11:33 AM

you are lucky. in bath, they are making up more rules on the pretext of making a higher standard of rented properties. if you work for the council and they make up more rules as they go along to ensure they have a job to do, its a job for life. job security. its not in the economy interest.why do you think uk economy is down? its suppressing capitalism and nobody wants to make money. they want an easy job on the council with secure monthly paycheck.