Estate agents - Charged unfair tenancy fees

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You should not be charged tenancy fees if you've signed or renewed a tenancy since 1 June 2019.

There are a few exceptions, though!

The only payments that you are allowed to be asked for are:

  • A refundable tenancy deposit of more than five weeks' rent (or six if your annual rent is over £50,000).
  • A refundable holding deposit capped at no more than a week's rent 
  • Payments to change the tenancy (generally capped at £50 unless the request is an exceptional one)
  • Payments involved with cancelling a tenancy early at the tenant's request.
  • Utilities, TV licence and council tax payments; and
  • Any fees for late payment of rent or replacing keys etc.

Apart from these, you shouldn't be charged!

One of the most important things to note here is that any holding deposits must be refundable.

Holding fees have been a point of contention for UK tenants for years, with unscrupulous agents charging a premium to "take the property off the market".

You should know
  • You may want to ask for a copy of your estate agent’s complaints policy and code of conduct. You should also ask for confirmation of who will be handling your complaint. Your agent should provide a written response within 15 days explaining the outcome of the initial investigation.
  • If you aren't happy with the estate agent's response, you can escalate your complaint to the Property Ombudsman.
  • You must refer a complaint to an ombudsman within twelve months of the agent's final viewpoint letter.
  • If you don't pay an agent's fees, they have the right to take you to court - and if they do so, an ombudsman will not be able to start an investigation into your complaint.

Be aware

If you do not pay your agent's fees they have a legal right to take you to court. If you contest the fees, then it is important that you raise the case immediately with the estate agent and pay the uncontested element of the fees. If the agent begins legal action against you, the ombudsman willnot be able to continue/start to investigate your complaint.

Your final option

If the estate agent is a member of Propertymark, it is bound by the their codes of practice. After receiving a decision from the ombudsman, you can refer the agent to Propertymark, who will investigate the agent's professional conduct and could impose a fine. However, Propertymark cannot make any financial awards to consumers. If the agent is a member, Resolver will give you this option automatically.

You may need to fill in a copy of Propertymark's consumer complaint form and send them a copy of your resolver case file. You should also include a copy of the ombudsman's findings and copies of supporting documents.

If you need additional advice

If you are unhappy with the ombudsman's decision and believe your estate agent has acted illegally, you can seek legal advice. 

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