Warning to landlords: don’t overcharge tenants for damage or repairs

Warning to landlords: don’t overcharge tenants for damage or repairs

Landlords or agents who overcharge tenants without providing evidence of costs are to be held to account in a new provision put forward under the Tenant Fees Bill.

The Tenant Fees Bill reached its third reading stage in the House of Commons this week, which saw MPs proposing a series of amendments including a default fee provision preventing landlords from charging “unfair” costs to tenants for minor damages.

According to the government, the crackdown will mean that landlords and agents who charge tenants for repairing or replacing items in their properties will need to provide evidence of the true cost to avoid tenants being overcharged.

Unfair charges from some landlords

Speaking at the consultation, Minister Rishi Sunak MP said the move will put an end to the minority of landlords who make tenants pay inflated prices when they cause damage to a property or when something needs replacing. The example used was of tenants who had been charged £60 to replace smoke alarms, when the local council would have done this for free.

Minister Rishi Sunak MP said: “Tenants across the country, whatever their income, should not be hit with unfair costs by agents or landlords.

“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.”

Opposition to the Bill

However, rather than make renting fairer, the Tenant Fees Bill has come under criticism from some industry bodies such as ARLA Propertymark, who fear that banning fees from landlords and agents could just push rents up, which makes the whole process less transparent.

David Cox, chief executive at ARLA Propertymark, said: “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.

“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.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT