Overview

This bill amends the Tenant Fees Act 2019, primarily clarifying which entities are exempt from its restrictions on tenant fees and further regulating client money protection schemes for property agents. It also adjusts permitted tenant payment amounts and introduces new definitions for certain situations.

Description

The amendments clarify that certain entities, such as local housing authorities and the Greater London Authority, are exempt from the ban on letting agent fees. The amendments significantly alter the regulations surrounding client money protection schemes for property agents, granting the Secretary of State more discretion in approving, designating, amending, or withdrawing approval of these schemes. Key changes include increased oversight of scheme rules and insurance requirements. The amendments also adjust the maximum permitted deposit amount to five weeks' rent for properties with annual rent below £50,000, and six weeks for those above. New definitions are provided to specify what constitutes a permitted or prohibited payment, encompassing circumstances such as lost keys, late rent payments, and damages from breach of tenancy agreements. Provision is made for exemptions for licences granted with only companionship or minimal financial consideration, and the specific calculation of late rent penalties is clarified.

Government Spending

The amendments are unlikely to have a significant direct impact on government spending. The increased regulatory oversight of client money protection schemes might lead to increased administrative costs for government agencies, but this is not quantified in the bill.

Groups Affected

• Local Housing Authorities & Greater London Authority: Exempted from certain tenant fee regulations.
• Property Agents: Subject to stricter regulations on client money protection schemes, impacting their operational costs and insurance needs.
• Landlords: Affected by changes to permitted deposit amounts and late rent payment regulations.
• Tenants: Affected by changes in permitted payment amounts and clarification of late rent payment regulations.
• Charities & Community Interest Companies: Potentially impacted by new definitions related to licence exemptions.
• Secretary of State: Granted increased powers in regulating client money protection schemes.

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