Tenant Fees Act 2019 comes into force

The Tenant Fees Act 2019 comes into force from 1 June 2019. Are you and your clients ready?

Following on from our recent article on the new Form 6A (which must be used from 1 June 2019) please also be aware that the Tenant Fees Act 2019 comes into force on the same day.   The Act applies to assured shorthold tenancies, licences to occupy and student lets.

The overriding principle of the Act is that all payments are banned except those that are expressly authorised by the Act.  It applies to any payment relating to a tenancy to be made by the tenant or a connected party such as a guarantor to the landlord, their agent and third parties.

If a prohibited payment is taken in relation to a tenancy that has been entered into on or after 1 June 2019 no valid section 21 notice can be served until that payment has been returned.

There are permitted payments and these are set out in Schedule 1

As for existing tenancies the new rules will apply from 1 June 2020.