As of 12 February 2019 landlords and letting agents can no longer:

1. Seek excessive deposits (these are now limited to a maximum of equivalent to 5 weeks rent for annual rents under £50,000 and 6 weeks rent for rents over £50,000;
2. Seek excessive or multiple holding deposits (which must be equivalent to no more than one weeks rent);
3. Attempt to charge letting fees disguised as a topped up initial rent payments;
4. Unjustified or unreasonable “default” fees for example where a tenant needs replacement keys, replacement smoke detectors or has made a late payment;
5. Charge more than £50 (or justified reasonable costs) for dealing with a tenant request to vary, assign or novate the tenancy agreement;
6. Charge a tenant a “fine” for early termination of its lease, if the landlord cannot demonstrate loss; or
7. Charge a premium for supplying communications service connections (e.g. internet, phone);

If a landlord or its agent is found to have charged so called “prohibited payments”, then repercussions include:

     (a)           the tenancy not being binding on the tenant;

     (b)            financial penalties can be imposed (with some breaches attracting penalties of up to £30,000);

     (c)             banning orders; and

     (d)            unless and until a prohibited payment is returned to a tenant, the landlord will not be able to terminate an AST.

The legislation does not have retrospective effect and will be effective from 1 June 2019.