In the guide
- Relevant businesses
- Relevant fees
- Display requirements
- Fees content
- Penalties
- Key legislation
This guidance is for England
One of the first new provisions brought into force by the passing of the Consumer Rights Act 2015 relate to requirements for accommodation letting agents and property management businesses to display their fees and charges to clients. This requirement came into effect on 27 May 2015.
Relevant businesses
The requirements relate to businesses that receive instructions from clients regarding accommodation to be let under assured tenancy agreements to:
- introduce prospective tenants to landlords with available accommodation for rent
- arrange assured tenancy contracts between landlords and tenants
- carry out property management services for landlords
Relevant fees
The fees that have to be indicated are the fees, charges and penalties payable to the letting agent by their clients under contracts for:
- introducing tenants to landlords with available accommodation for rent
- arranging assured tenancy agreements
- the management of rental properties
However, the following fees do not have to be indicated:
- rental charges
- tenancy deposits
- any fees, charges, penalties that the letting agent receives from a landlord under a tenancy on behalf of another person
- any other fees, charges or penalties specified in regulations
An assured tenancy is one as defined in the Housing Act 1988 (excluding long leases as defined in the Leasehold Reform, Housing and Urban Development Act 1993) except where the landlord is a:
- private registered provider of social housing
- registered social landlord
- fully mutual housing association
Display requirements
Letting agents must display a list of relevant fees
- in each of their premises where they deal with clients or potential clients face-to-face
- on their website, where applicable
This list must be displayed in a conspicuous place.
Fees content
The displayed fees list must include:
- an adequate description of each fee and its purpose
- whether the fee is payable for the accommodation or by each tenant
- the total amount of the fee inclusive of all taxes
- the method of calculating the fee, if the fee cannot be determined in advance
In England only, letting agents engaging in letting agency or property management work relating to private accommodation must also display the following:
- a statement regarding whether the business is a member of a client money protection scheme
- a statement that they are a member of a redress scheme and the name of that scheme, where applicable
Penalties
A penalty of up to £5,000 can be imposed by trading standards services for breaches of these requirements, subject to any statutory guidance issued and an appeals procedure.
