Tenancy Agreement Renewal Fee Uk

Tenancy Agreement Renewal Fee UK: What You Need to Know

If you are a tenant in the United Kingdom and you are coming to the end of your tenancy agreement, you may be wondering about the renewal fee. In this article, we will explain everything you need to know about tenancy agreement renewal fees in the UK.

What is a Tenancy Agreement Renewal Fee?

A tenancy agreement renewal fee is a fee charged by a landlord or letting agent when a tenant renews their tenancy agreement. It is typically paid by the tenant and covers the cost of renewing the agreement and any administrative work involved in the process.

Are Tenancy Agreement Renewal Fees Legal in the UK?

Tenancy agreement renewal fees were banned on June 1st, 2019 in England. This means that landlords and letting agents are no longer allowed to charge tenants for renewing their tenancy agreement. However, fees charged before this date are still valid.

In Scotland, tenancy agreement renewal fees are also banned. This ban was introduced on December 1st, 2017.

In Wales, tenancy agreement renewal fees are still legal and can be charged by landlords and letting agents.

How Much Can Landlords and Letting Agents Charge for Tenancy Agreement Renewal Fees?

Before the ban in England and Scotland, landlords and letting agents were free to charge whatever they liked for tenancy agreement renewal fees. However, in Wales, there are regulations that landlords and letting agents must follow.

In Wales, landlords and letting agents can only charge one renewal fee per renewal period. This fee cannot exceed £180 (including VAT) unless the landlord can show that they have incurred greater costs in renewing the tenancy agreement.

What Costs Can Landlords and Letting Agents Include in Tenancy Agreement Renewal Fees?

Before the ban in England and Scotland, landlords and letting agents could include a range of costs in tenancy agreement renewal fees. These could include:

– Administration costs

– Inventory costs

– Renewal of safety certificates

– Reference checks

However, since the ban, these fees are no longer legal.

In Wales, landlords and letting agents can only charge a renewal fee that reflects the reasonable costs incurred in renewing the tenancy agreement. This may include things such as the cost of preparing and printing a new agreement or conducting new reference checks.

What Happens if a Landlord or Letting Agent Charges You a Tenancy Agreement Renewal Fee?

If you are charged a tenancy agreement renewal fee in England or Scotland after the ban was introduced, you may be able to challenge the fee. You should first try to negotiate with your landlord or letting agent to have the fee waived. If this is not successful, you can complain to a professional body, such as ARLA Propertymark or the National Landlords` Association.

If you are charged a tenancy agreement renewal fee in Wales that exceeds the legal limit, you can challenge the fee by complaining to the landlord or letting agent. If this is not successful, you can take your complaint to the Rent Smart Wales Enforcement team.

Conclusion

Tenancy agreement renewal fees are no longer legal in England and Scotland, but they are still legal in Wales. If you are a tenant in Wales, you should be aware of the regulations around these fees and how much you can be charged. If you are charged a renewal fee in England or Scotland after the ban was introduced, you may be able to challenge it.