Amended Section 21 and revised How to Rent Guide

As a result of the Tenant Fee Act which came in place on 1 June 2019, the government amended form 6A  (Section 21 notice) and issued a revised  How to Rent Guide to reflect the changes introduced by Act.

FORM 6A (Section 21 notice)

WHAT ARE THE CHANGES?

The form now states (amongst other grounds) that the form should not be used:

(f) where the landlord is prevented under Section 17 of the Tenant Fees Act 2019. (NB No section 21 notice may be given in relation to a tenancy where a landlord has breached section 1(1) or Schedule 2 of that Act so long as all or part of the prohibited payment or holding deposit has not been repaid to the relevant person or applied to the rent or deposit with the consent of the relevant person.)

This means that where landlords or their agents have charged tenants fees which are not permitted under Schedule 1 or 2 of the Tenants Fees Act, they will not be permitted in law to use Section 21.

WHAT ARE THE PERMITTED PAYMENTS?

A permitted payment under Schedule 1 includes amongst other things:

1. Rent

2. Tenancy Deposit – 5 weeks deposit where the annual rent is £50,000 or less and 6 weeks where it is above that figure.

3. Payment in the event of a default – the tenancy agreement must contain a provision permitting this charge and it can only be applied for the loss of a key or other security device or where rent is more than 14 days late. In order to recover the payment, the charge must be reasonably incurred and (for loss of keys) supported by some form of evidence, such as a receipt.

4. Payment in respect of utilities

Our previous detailed post on permitted charges can be read here.

Schedule 2 of the Tenant Fees Act relates to the Holding Deposit and in what circumstances it should be returned or retained.

HOW TO RENT GUIDE

This updated guide provides a step-by-step process to renting privately. It is a legal requirement for all landlords, or their agents, to provide their tenants with this document.

SUMMARY OF THE CHANGES

1. tenant fees are no longer permitted with a link for tenants to seek further guidance;

2. deposits are capped at 5 weeks rent where the annual rent is less than £50,000 or and 6 weeks where the annual rent is £50,000 or above; and

3. deposit replacement products can be offered on a voluntary basis only.

The new How to Rent Guide must be given for any tenancy that was executed, renewed or became statutory periodic on or after 31 May 2019.

Failure to serve the most up to date guide invalidates any future Section 21 action.