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    • Bank of England January 2020 base rate meeting
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    • Direct rates offered through lender portals can be costly?
    • Bank of England cuts the base rate to almost zero
    • Buying, selling and moving home during the pandemic
    • Tightening credit conditions in the mortgage market
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    • The property market reopens for business
    • Lenders reintroduce 90% mortgage deals
    • Turbulent times for lenders
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    • Your guide to mortgage valuations
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    • Introduction
    • 1st Time Buyers Mortgage Guide
    • 1st Time Buyer & Help to Buy
    • What is a Buy to Let Mortgage?
    • Buy to Let Mortgage Advice
    • Flexible Mortgages
    • Interest Only
    • Remortgaging
    • Repayment
  • Protection
    • Introduction
    • Do I need Income Protection Insurance?
    • Income Protection Advice
    • Why do you need Life or Critical Illness Insurance?
    • Critical Illness & Serious Illness Cover
    • ASU / Redundancy
  • Life Insurance
    • Introduction
    • Term Insurance Policies
    • Endowment Policies
    • Family Income Benefit
    • Guaranteed 50 Plus Life Cover
    • Whole of Life
  • Conveyancing & Solicitors
  • Surveys and Valuations
  • General Insurance
    • Introduction
    • Buildings & Contents Insurance
    • Compare & Buy Online Now!
    • Landlord Cover
    • Rent Guarantee
    • Home Buyers' Protection
    • Home Emergency Cover
    • Commercial Insurance
    • Professional Indemnity
    • Public & Employers' Liability Insurance
  • Will Writing & Estate Planning
  • Other Loans & Services
  • Articles
    • Bank of England Rate Rise
    • Fee Free Mortgage Advice
    • Negotiating the best price for your new home
    • Freehold versus Leasehold
    • Why you need advice on mortgages
    • Ten terms first time buyers will want to know
    • Buying process and dealing with estate agents
    • Selling property and marketing options
    • Help to Buy or not Help to Buy: that is the question
    • New home or pre-loved?
    • Interested in interest only?
    • Are lifetime mortgages on the rise?
    • General Data Protection Regulation (GDPR)
    • Solicitors and conveyancers
    • Joint Borrower Sole Proprietor Mortgages
    • The 3% stamp duty
    • First-time buyer stamp duty relief
    • Offset mortgages: how they work and who they work for
    • Self-employed mortgages versus mortgages for those employed by others
    • Mortgages: debts versus deposits
    • House prices increase swiftest in North West compared to rest of UK
    • Transfer of Equity
    • 10 Pitfall Mortgages
    • Remortgages versus product transfers
    • Limited Company Buy-to-Let Mortgages
    • Retirement Interest Only (RIO) mortgages and the new residential option between normal Interest Only and Equity Release
    • 2019 and our rate of interest predictions
    • Brexit and the property market 2019
    • Potential benefits of using a broker
    • The mortgage market: lenders and their existing clients
    • Mortgages and Relationships
    • Robo Advice: is it right for you?
    • Cheaper rates versus cheaper fees
    • Why online mortgage comparisons can be so vastly different
    • Affordability Calculators
    • Cashback Mortgages
    • Government Rent a Room Scheme
    • Government Marriage Allowance
    • The property market continues to move; and the North West is looking good
    • England letting fees banned and how this may affect you
    • Top credit file definitions
    • Understanding your credit rating
    • BTL, LTB, HMO & holiday let terms explained
    • Offset mortgages: term and payment reduction options
    • November 2019 Bank of England base rate
    • The general election candidates for the Chorley Constituency
    • 2019 year-end mortgage lending market
    • 2019 year-end house prices
    • Can we expect sub 1% mortgagee deals?
    • How is Brexit likely to affect 2020 mortgages and house prices?
    • Interest rates in the UK, Europe and beyond
    • How the Great British Pound is faring against Euro and US Dollar
    • Help to Debt (HTD) – the importance of good advice when it comes to making borrowing decisions
    • Bank of England January 2020 base rate meeting
    • Lender Dual pricing: what it means to the mortgage seeker
    • Direct rates offered through lender portals can be costly?
    • Bank of England cuts the base rate to almost zero
    • Buying, selling and moving home during the pandemic
    • Tightening credit conditions in the mortgage market
    • One in seven takes mortgage payment holiday
    • The property market reopens for business
    • Lenders reintroduce 90% mortgage deals
    • Turbulent times for lenders
    • Easing out of lockdown
    • First-time buyer demand surges but options are limited
    • Stamp duty scrapped on homes under 500k
    • Competition watchdog investigates developers over mis-selling claims
    • UK economy may need further stimulus says the Bank of England
    • Your guide to mortgage valuations
    • Your guide to mortgage surveys
    • A quick guide to interest rates
    • A quick guide to inflation
    • The state of the housing market at the end Of 2020
    • What to look for in the 2021 property market
    • Price caps revealed for Help To Buy Scheme
    • Are 95% mortgages coming back?
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  • Home
  • England letting fees banned and how this may affect you

England letting fees banned and how this may affect you

If you’ve heard about the recent change in legislation regarding letting fees, you may be interested to know a little more on what this means to landlords, their agents and to tenants.

June 1st saw a significant change to the way in which landlords and their agents in England work; they are no longer allowed to charge tenants letting fees on new contracts signed on or after that date.

It is no longer OK to charge those taking out a new tenancy certain fees, including tenancy set up and check out fees, referencing fees and credit check fees.

Taking things one step further, if you are a tenant and you renew a pre-existing tenancy agreement after June 1st, you could potentially claim back some of your deposit.

Of course, this is a game changer for anyone involved in lettings.

From the 1st June, the only costs landlords and agents can charge for are:  
•    The rent itself
•    Utilities and council tax (that are included within the tenancy)
•    A refundable deposit which is capped at five weeks’ rent if your annual rent is below £50,000; or six weeks’ rent if annual rent is higher than this.
•    A refundable holding deposit to reserve the property which is capped at one week’s rent
•    Variations to the tenancy requested by the renter
•    Defaults by the tenant; for example, fines for not keeping up with rent payments or for lost keys. Lost key fines are required to be “reasonable” with written evidence from the landlord or agent

Late rent payment fines are capped at an APR of 3% above the Bank of England base rate and are determined based on the days the amount has been outstanding. These fines can only be charged when a payment has been outstanding for 14 days.

No other fees can be charged.

So, what does this mean for landlords and agents?

For anyone who charges other fees, they could face a £5,000 fine for a first offence; and an unlimited fine should they contravene the new ruling again within a five-year period.

And for tenants?

If you entered into a tenancy agreement prior to 1st June and your agreement includes additional fees, you will be required to pay these up until 31st May 2020. From 1st June 2020, you will no longer be bound to pay these.

If you are renewing a tenancy from 1st June this year onwards and you originally paid a deposit that’s greater than five weeks’ rent (or six weeks’ rent if the annual rent is more than £50,000), then you should be entitled to a partial refund.  

A refundable deposit which is capped at five weeks’ rent if your annual rent is below £50,000; or six weeks’ rent if annual rent is higher than this.

Scotland, Wales and Northern Ireland

Scotland has already banned further letting fees.

Wales is set to ban them from September 2019.

In Northern Ireland, the fees are still legal.

More information

It’s knowing this news and exactly what it means that makes us a great port of call. Why not get in touch so we can chat through your own set of circumstances together?

Company address: Euxton Mortgage Market, Hearle House, 5 East Terrace Business Park, Euxton Lane, Chorley, Lancashire, PR7 6TB
T: 01257208946 F: 01257208947 Email: info@euxtonmortgagemarket.co.uk

Euxton Mortgage Market are independent mortgage advisers covering Euxton and the surrounding areas, including: Leyland, Bamber Bridge, Farrington, Lostock Hall, Longton, Adlington, Charnock Richard, Croston and Rivington.

Adrian John Wood, trading as Euxton Mortgage Market, is an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority.

*Some of these products are not regulated by the Financial Conduct Authority.

Adrian John Wood is entered on the Financial Services Register (www.fca.org.uk/register) under reference 682490.

H L Partnership Limited is entered on the Financial Services Register (www.fca.org.uk/register) under reference 303397.

The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK.

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