The Tenant Fees Act 2019 came into force on 1 June 2019. The Act allowed for a 12 month transitional period, so that the Act would not apply to tenancies entered into before 1 June 2019.  That transitional period is now over and the Act now applies to all tenancies, even those that existed before 1 June 2019. 

The Government guidance can be accessed using this link and is certainly worth a read to refresh on the rules: 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/819634/TFA_Landlord_and_Agent_Guidance_190722.pdf

In short, unless the payment is one of the payments included in the Act as permitted then it is prohibited. The permitted payments include: 

• the rent
• a refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above
• a refundable holding deposit (to reserve a property) capped at no more than one week’s rent
• payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher
• payments associated with early termination of the tenancy, when requested by the tenant
• payments in respect of utilities, communication services, TV licence and council tax; and
• A default fee for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement 

There are also some practical considerations that need to be addressed: 

The Act only concerns itself with payments "made" after 1 June 2019. If the deposit was paid before 1 June 2020 then unless the tenancy is renewed, the deposit does not need to be adjusted or returned. 

No. The payment would be "made" after the transitional period and would be considered a prohibited payment. 

It is important that tenancies are reviewed for prohibited payments as, aside from the risk of a fine, any section 21 notice served whilst a prohibited payment has been taken and not returned is invalid. This could be a costly mistake when trying to obtain possession. The new accelerated possession claim released in April this year, requires confirmation that no prohibited payments have been taken. 

If you would like to discuss the implications of the Tenant Fees Act 2019, then please get in touch and our specialised residential landord and tenant team will be happy to help.