The new Tenant Fees Act 2019 will come into force on 1 June 2019 for all new or renewal tenancies commencing on or after 1 June 2019 and will extend to all Assured Shorthold tenancies from 1 June 2020. The Act will only apply to assured shorthold tenancies, student lettings and licences and it will not affect social housing tenants or long term leases.
The Act not only prohibits deposit payments larger than 5 weeks' rent for properties where the annual rent does not exceed £50,000 per year, but also any other payments except for contractual default penalties i.e. late rent or lost keys.
If a landlord fails to comply with the above requirements, this could result in a financial penalty of £5,000 for the first offence and fines of £30,000 for the second offence.
For further information on the Tenant Fees Act 2019 please visit http://www.legislation.gov.uk/ukpga/2019/4/contents/enacted.