While everyone was focused on Brexit, Britain’s renters received an early Christmas present

Or ANY week! Image: Getty.

On Tuesday night, the government made some technical changes to the Tenant Fees Bill which barely anyone noticed.

But they should. Because, with these changes, the ban on tenant fees will save private renters collectively millions of pounds.

In 2016 the Chancellor announced a ban on letting fees to great fanfare.

And quite right too: Shelter research shows on average private renters in England had to pay £246 in letting agent fees, and families had to pay even more.

But since that announcement, the average renter can be excused for being a bit confused as to what happened next, when they continued finding themselves slapped with enormous fees.

In fact, politicians were still debating what should be in the deal, and it has been watered down quite considerably.

The problem was that there was a gaping loophole smack bang in the middle of the bill. Something called a “Default Fee” would have allowed landlords and agents to carry on charging private renters even after the ban had happened.

These are charges for things like losing a key or breaking part of your tenancy agreement.

The problem was there were initially no real controls on how big these charges could be. So you got people being charged £100 for “cobweb removal” and £10 to iron curtains. (These aren’t jokes: feast your eyes on the top ten.) Inevitably then, agents would exploit this loophole – and they even said so themselves.


This all meant that renters would have remained at the mercy of agents and landlords.

But this is where organisations like Shelter, Citizens Advice and Generation Rent come in. Together we raised our serious concerns about this to the government. Liberal Democrat & Labour Peers also worked tirelessly behind the scenes and in Parliamentary debates to make the case to government that default fees needed tightening.

And, lo and behold, the government listened to these concerns and acted.

On Tuesday night it stepped in by tabling amendments to the ban which now tightly define what makes a default fee.

That means the only things that can be charged as default fees are lost keys and late rent. So agents and landlords who were planning on drawing up a list of make-believe charges now simply can’t.  

In our eyes, this fully closes the default fees loophole once and for all. This is a big win and a true testament to cross-party working.

Deposits, capped

As well as doing away with the default fee loophole, the government also put forward amendments to cap security deposits at five weeks’ rent instead of six.

Seeing as we all know the astronomical cost of renting, this is a big deal and also very welcome.

Shelter research shows it is in fact the equivalent of £150 or more in over half of local authorities.

The final amendment laid yesterday introduced some additional protections for renters around holding deposits. This is the refundable deposit used to reserve a property before the tenancy agreement is signed.

Following these changes, when a tenancy isn’t going ahead, a landlord or agent will have to set out in writing their reasons for retaining some of the holding deposit within seven days of deciding not to go ahead with the tenancy. This will give clarity to renters and make it easier for them to challenge if they feel their money has been withheld unfairly.

Thanks to the recent changes, which were the result of true cross-party collaboration, the government is set to deliver a huge victory for renters. We hope this will become law by January next year and be in force later in the Spring.

There’s no doubt this bill will make renting fairer and more affordable for all renters. But it must be just the beginning.

Greg Beales is campaign director at the housing charity Shelter.

 
 
 
 

CityMetric is now City Monitor! Come see us at our new home

City Monitor is now live in beta at citymonitor.ai.

CityMetric is now City Monitor, a name that reflects both a ramping up of our ambitions as well as our membership in a network of like-minded publications from New Statesman Media Group. Our new site is now live in beta, so please visit us there going forward. Here’s what CityMetric readers should know about this exciting transition.  

Regular CityMetric readers may have already noticed a few changes around here since the spring. CityMetric’s beloved founding editor, Jonn Elledge, has moved on to some new adventures, and a new team has formed to take the site into the future. It’s led by yours truly – I’m Sommer Mathis, the editor-in-chief of City Monitor. Hello!

My background includes having served as the founding editor of CityLab, editor-in-chief of Atlas Obscura, and editor-in-chief of DCist, a local news publication in the District of Columbia. I’ve been reporting on and writing about cities in one way or another for the past 15 years. To me, there is no more important story in the world right now than how cities are changing and adapting to an increasingly challenging global landscape. The majority of the world’s population lives in cities, and if we’re ever going to be able to tackle the most pressing issues currently facing our planet – the climate emergency, rising inequality, the Covid-19 pandemic ­­­– cities are going to have to lead the way.

That’s why City Monitor is now a global publication dedicated to the future of cities everywhere – not just in the UK (nor for that matter just in the US, where I live). Our mission is to help our readers, many of whom are in leadership positions around the globe, navigate how cities are changing and discover what’s next in the world of urban policy. We’ll do that through original reporting, expert opinion and most crucially, a data-driven approach that emphasises evidence and rigorous analysis. We want to arm local decision-makers and those they work in concert with – whether that’s elected officials, bureaucratic leaders, policy advocates, neighbourhood activists, academics and researchers, entrepreneurs, or plain-old engaged citizens – with real insights and potential answers to tough problems. Subjects we cover include transportation, infrastructure, housing, urban design, public safety, the environment, the economy, and much more.

The City Monitor team is made up of some of the most experienced urban policy journalists in the world. Our managing editor is Adam Sneed, also a CityLab alum where he served as a senior associate editor. Before that he was a technology reporter at Politico. Allison Arieff is City Monitor’s senior editor. She was previously editorial director of the urban planning and policy think tank SPUR, as well as a contributing columnist for The New York Times. Staff writer Jake Blumgart most recently covered development, housing and politics for WHYY, the local public radio station in Philadelphia. And our data reporter is Alexandra Kanik, whose previous roles include data reporting for Louisville Public Media in Kentucky and PublicSource in Pittsburgh, Pennsylvania.

Our team will continue to grow in the coming weeks, and we’ll also be collaborating closely with our editorial colleagues across New Statesman Media Group. In fact, we’re launching a whole network of new publications, covering topics such as the clean energy transition, foreign direct investment, technology, banks and more. Many of these sectors will frequently overlap with our cities coverage, and a key part of our plan is make the most of the expertise that all of these newsrooms combined will bring to bear on our journalism.

Please visit citymonitor.ai going forward, where you can also sign up for our free email newsletter.


As for CityMetric, some of its archives have already been moved over to the new website, and the rest will follow not long after. If you’re looking for a favourite piece from CityMetric’s past, for a time you’ll still be able to find it here, but before long the whole archive will move over to City Monitor.

On behalf of the City Monitor team, I’m thrilled to invite you to come along for the ride at our new digs. You can follow City Monitor on LinkedIn and on Twitter. If you’re interested in learning more about the potential for a commercial partnership with City Monitor, please get in touch with our director of partnerships, Joe Maughan.

I want to thank and congratulate Jonn Elledge on a brilliant run. Everything we do from here on out will be building on the legacy of his work, and the community that he built here at CityMetric. Cheers, Jonn!

To our readers, on behalf of the City Monitor team, thank you from all of us for being such loyal CityMetric fans. We couldn’t have done any of this without you.

Sommer Mathis is editor-in-chief of City Monitor.