This afternoon, the @UKHouseofLords will debate the next stage of the #TenantFeesBill. @CitizensAdvice is hoping they’ll close a new loophole in the Bill. Thread ⬇️based on @metteisaksen’s blog wearecitizensadvice.org.uk/putting-an-end…
1. The Govt’s intention behind the Bill is ‘to end unfair and uncompetitive tenancy fees’. While we support the Govt’s intentions, there have been some loopholes causing us concern wearecitizensadvice.org.uk/putting-an-end…
2. E.g. We’ve been asking Govt to remove or significantly tighten the ‘default fees’ paragraph in the Bill. We were also concerned about the deposit cap, as the proposed cap was 6 weeks’ rent. This is too high & unaffordable for many renters.
3. Govt has now acted on both of these by tabling suggested amendments. If voted through today, default fees will be tightened so landlords and agents will only be able to charge for lost keys or late rent.
4. The deposit cap will also be reduced to 5 weeks’ rent for most renters. This is good news!
5. However, Govt has closed one loophole on default fees and opened another on damages. Ahead of Report stage, Govt has tabled a suggested amendment on ‘Payment of damages.’
6. This allows landlords to charge tenants ‘damages’ if a tenant breaches the terms of the tenancy. However, because there’s no requirement for landlords or agents to independently prove their ‘damages’ claim, this could be abused.
7. The suggested amendment could encourage landlords or agents to write ‘cover-all clauses’ into tenancy agreements, which means that all breaches could have a damages fee attached.
8. These are exactly the concerns we had about the default fee paragraph. ‘Payment of damages’ undermines the main aim of the bill — to ban unfair fees. We don’t believe that this is the Govt’s intention gov.uk/government/new…
9. Govt should either remove this suggested amendment entirely or tighten the wording ahead of the Bill’s next stage - so that the Tenant Fees Bill puts an end to all unfair fees. Full briefing found here citizensadvice.org.uk/Global/Citizen…
