Campions Conveyancing Solicitors of Derby(Pride Park), and Nottingham(Mansfield Road) give the following advice on the above. Tenants can be charged only one or more of seven payments in connection with a Tenancy. These are the rent,a refundable Tenancy deposit, a refundable holding deposit, payments to change a Tenancy or early termination, payments in respect of utilities and out payments, and a default fee for various matters.
The Act states that if a landlord asks for a payment is not on the list then that is a Prohibited Payment and banned by law. Now some Questions and Answers on this.


Q – From what dates does this Act apply?

A – This ban applies to all relevant new Tenancies from the 1st June 2019. For all existing Tenancies a Landlord can charge fees beyond the seven allowed by the Act up until the 1st June 2020. However this is only where allowed and agreed under an existing agreement that dates from before the 1st June 2019.


Q – To what Tenancies does this Act apply to?

A – The Act applies to all Assured Shorthold Tenancies,(AST’s). It also applies to all student housing and licences to occupy properties.


Q – What are the penalties for a breach?

A – The penalties are very severe. In the first instance they are a fine of up to £5000 or in the alternative a financially penalty of up to £30000. The choice of penalty will be decided by the authorities on a case by case basis and in accordance with their policies.

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