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Does the UK charge agency fees for renting?
Answer: Since June 2019, the Tenant Fees Act 2019 in the UK prohibits letting agents or landlords in England and Wales from charging agency fees to tenants. This means that agency fees are not allowed and tenants are not required to pay them. The law specifies the following fees that landlords or agents can charge tenants:
Rent (the payment terms can be negotiated depending on the landlord or agent's preference, whether it's paid annually, semi-annually, or quarterly).
Refundable tenancy deposit, capped at a maximum of 5 weeks' rent (or 6 weeks' rent if the annual rent exceeds £50,000), which must be protected by a third-party deposit protection scheme.
Refundable holding deposit, which is used to reserve the property and is capped at a maximum of one week's rent.
Payments related to the early termination of the tenancy agreement, if requested by the tenant.
Payments for changes, assignments, or variations to the tenancy agreement, up to a maximum of £50 (or reasonable costs incurred).
Utility bills, communication services, TV licenses, and council tax (if applicable and agreed upon with the tenant).
Penalties for late rent payment and charges for replacement keys or access cards.
It's important to note that if landlords or agents charge any additional fees beyond the ones mentioned above, they may face significant fines or legal action. Therefore, tenants should ensure that their rights are protected.
For other regions in the UK outside of England and Wales, it is common for letting agents to charge the first month's rent as agency fees or a percentage (around 10%-15%) of the total rent. However, many agents now offer properties without agency fees. It's worth mentioning that rental fees in the UK are typically calculated on a weekly basis, with rental periods of 51 or 44 weeks. The rent is rarely calculated on a monthly basis. Therefore, you will often see rental prices listed as PW (Per Week) or PCM (Per Calendar Month) on UK property websites. It's possible to negotiate agency fees or request additional services from the agent, such as negotiating the rent with the landlord.
What to do if landlords or agents charge unreasonable fees in the UK?
If landlords or agents charge unreasonable fees, such as inspection or cleaning fees when moving out or request payment for fees that are not applicable, you can take the following steps to protect your rights:
Collect and preserve evidence related to the situation.
Communicate with the landlord or agent through written communication (emails or text messages) to request them to stop the charging practice and refund any unreasonable fees. It's important to ensure clear documentation, and if necessary, record any phone calls or in-person conversations.
If the first step doesn't resolve the issue, report the matter to the Redress Scheme (refer to Note 1).
If the issue remains unresolved, inform the local government authorities in the area where the property is located.
If previous steps have been unsuccessful, seek assistance from the International Office (IO) at your university or seek legal advice. Most UK universities provide free legal support to their students.
With the assistance of a lawyer obtained in step 5, you can escalate the matter to the First-Tier Tribunal by visiting the official website: https://www.gov.uk/housing-tribunals.
It's important to note that if you have already paid unreasonable fees to the landlord or agent and successfully obtained a refund through the above process, but the landlord or agent intentionally causes issues, such as asking you to move out without valid reasons, as long as you have not violated the terms of the tenancy agreement, you can repeat the above process to address the situation."
Note 1: Redress Scheme is a legal requirement for all rental agents to register with. If an agent fails to join the Redress Scheme, their license can be revoked, and they may face fines.