The Tenant Fees Act 2019 :

An important ALERT for Employers moving people to the UK

You may remember that my team and I campaigned hard for this change in the law that bans landlords/agents from charging fees to renters.  We reached out to our corporate clients and many of you assisted us in that effort.  

We are thrilled with the outcome which bans landlords/agents from charging fees to most tenants, except in some limited circumstances.  The new law has been in effect for 2 weeks now. Any relevant rental contract (or licence to occupy) entered into on or after June 1st, 2019 is now subject to the new fee ban.

However, there are a couple of wrinkles which you need to be aware of.  More on those in future alerts but there is one, little known about wrinkle that I must bring to your attention immediately – and it’s this.  

Employers run the risk of falling foul of the new law if they charge an employee anything relating to UK accommodation that might be construed as a prohibited fee.  Such situations can and do apply where a company has taken the rental contract in its own name for an employee.  The penalties are severe for every single offence so please take notice of this alert because this is a little known consequence of the new law that could result in enforcement action being taken against corporate employers.

As you well know, corporations are often seen as an easy source of revenue for the UK government!

If you’re in doubt about whether you risk non-compliance with the new law, please Contact us to us and we’ll be pleased to advise on your specific situation.