From the 1st June, landlords and their agents will no longer be able to charge fees for new tenancies. Any costs to draw up agreements, host inventories or renew existing tenancies will have to be paid for by landlords. Citizens Advice found that 64% of tenants experience problems paying letting agents' fees, and 42% have to borrow money to cover the cost.
Tandem Founder and CEO Ricky Knox says, “High referencing fees, fees to draw up a ‘cut and paste’ tenancy agreement and extortionate check-in fees just to hand over a key all take advantage of hard-pressed renters. We have seen similar problems with unnecessary, even opaque, fees in banking and this new letting fee ban will save Brits £100s a year.”
Whilst the ban comes into place immediately for any new tenancy agreements signed after 1st June, renters under existing agreements should be aware that tenant fees can continue to be allowed until May 2020. Those who have overpaid on the cap for deposits before the 1st June will also have to wait until May 2020 for a refund.
Tandem CEO Ricky Knox says, “It’s hard enough securing accommodation without being stung with fees. Whether renters are making their savings now or cash in their refund in a years time, they’ll now have more money to spend on things they care about. ”
Tandem Bank was founded to improve people’s lives with money. With its banking app, Tandem is able to leverage users’ data across all of their accounts to give them advice on how to save, flag potential instances of fraud and much more. The bank also offers market leading savings products and credit cards that don’t burden people with fees on overseas payments. They currently save customers an average of £142 per year, leaving them more money in their pockets.