The Tenant Fee Ban is Coming

The Tenant Fee Ban is Coming

Tenant Fees Banned WEF 1June 2019

The Tenant Fee Ban is Coming


The Tenant Fees Ban becomes law on the 1st June 2019.  This will mean that landlords and agents are not allowed to charge tenants for anything other than Rent, Utilities and Damages during the normal course of their tenancy.  Some extras, for example re-cutting lost keys will remain permissible.

How Does This Affect Tenants?

The ban will make it much easier for tenants to move from one property to another because there is no requirement to find landlord or agent fees (in addition to the rent and deposit) whenever they move house.

It also makes it easier for tenants to factor in the real costs of moving house and easier to compare like-for-like when looking for a new property.

The legislation will also restricts the maximum deposit payable on any property to the equivalent to 5 weeks’ rent. This means that tenants with a rent of less than £650 wil eventually receive a cheque back from the DPS made payable for the balance.

Graham Jolliffe, Director of Maher Ross said “The Tenant Fee Ban is great news for tenants because it makes it easier to compare properties and less costly to move house.  In our view, it will lead to a small overall increase in rents as the costs are inevitably passed back to tenants - but because these will be spread over the course of the tenancy, it will hopefully be by no more than about £10 to £15 every month.

How Does This Affect Landlords?

The Tenant Fee Ban is being taken very seriously by the Government and Landlords who attempt to charge illegal fees after the 1st June 2019 could be fined up to £5000.

Landlords will also no longer be able to charge additional ‘Pet Deposit’ and many are already calling for rents to increase for properties with pets to offset the increase percieved risk - an increase likely to be between £10 and £20 a month. 

How Does This Affect Agents?

For some of the national and corporate agents, the Tenant Fee Ban represents up to 35% of their annual income.  Maher Ross has always sought to keep their tenant fees as low as possible and the impact on them will represent just over 10% of income. 

Chris Maher, Director of Maher Ross said “We’ve always believed in maintaining an excellent relationship with our tenants and a part of this has meant trying to keep our tenant fees as low as possible.  We have made some significant economies to reduce our own costs but at the end of the day, we will have to increase the cost of our services for our landlords and rents will inevitably rise a little soon afterwards.”


If you have any unanswered questions about the Tenant Fee Ban, you would be very welcome to speak with Graham at Maher Ross on 01983 563000