Overview

This bill amends the Tenant Fees Act 2019, clarifying which entities are exempt from its restrictions on tenant fees, adjusting regulations surrounding client money protection schemes for property agents, and modifying permitted and prohibited payments related to tenancies. Key changes involve specifying exceptions for local authorities and refining the rules about holding deposits, rent arrears, and client money handling.

Description

Amendments to the Tenant Fees Act 2019:

The amendments clarify that local housing authorities and the Greater London Authority are exempt from the restrictions on tenant fees. The definition of "relevant person" is introduced to broaden the scope of protection to individuals closely connected to the tenant.

Client Money Protection Schemes:

Significant changes are made to the Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018 and the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019. These amendments grant the Secretary of State more discretion in approving and regulating these schemes, introducing requirements for insurance coverage and defining what constitutes client money more precisely. The amendments also aim to increase transparency and accountability within these schemes.

Permitted and Prohibited Payments:

The bill adjusts the permitted amount of holding deposits (reducing the maximum to five weeks' rent for annual rents under £50,000), clarifies the rules around repayment of holding deposits if a tenancy agreement isn't reached, and sets out a more detailed system for calculating permitted payments for late rent, preventing excessive charges. It also introduces the concept of "excluded licences," exempting certain informal arrangements from the restrictions.

Government Spending

The bill doesn't directly specify government spending increases or decreases. The amendments may indirectly affect government spending through enforcement activities related to the client money protection schemes and the Tenant Fees Act, but no figures are available within the provided bill text.

Groups Affected

• Tenants: Benefit from clearer regulations regarding fees and protections against excessive charges.
• Landlords: Subject to new regulations on permitted payments, holding deposits and client money handling, impacting their operational costs.
• Letting Agents: Similarly affected by the new regulations concerning fees, client money protection schemes and the handling of tenant deposits.
• Local Housing Authorities and the Greater London Authority: Specifically exempted from certain aspects of the Tenant Fees Act.
• Property Agents: Subject to enhanced regulations related to client money protection schemes.
• Charities and Community Interest Companies: Potentially affected by the definition of "excluded licences," which relates to their involvement in tenancy agreements.

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