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Posted 20 May 2019
by Melanie Burton

Deposit Cap and the Tenant Fee Ban

Park owners rented property

Parks that rent out park homes or other properties on tenancies should be aware that from 1st June 2019, the Tenant Fees Act 2019 comes into effect which limits deposit amounts to 5 weeks’ rent for new and renewed tenancies where the annual rent is less than £50,000.

The Act also:

  • Limits the amount landlords can charge for a holding deposit to one week’s rent and sets time frames for repayment;
  • Limits default fees (which can be charged during the tenancy) to reasonable costs incurred in replacing a lost key or interest on rent overdue by 14 days or more, capped at 3% above the Bank of England base rate.
  • Limits fees for making changes to a tenancy agreement (such as to allow a pet) to the greater of £50.00 including VAT or the reasonable cost of making the change to the tenancy agreement.

The Act also provides a list of prohibited payments which cannot be charged under any circumstances. For example:

  • Fees being charged for early termination (other than in relation to the exercise of a break clause)
  • Fees being charged for breaches of the tenancy agreement (during tenancy)

More information can be found on the website. The Tenancy Deposit Scheme provides a bulletin service you can subscribe to here.

If you have any queries regarding the topic of this blog or if you are interested in subscribing to our Parklaw service, contact the Parks Team by telephone on 01392 207020 or email

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About the author

Melanie Burton

Partner & Chartered Legal Executive

A partner and Chartered Legal Executive within the holiday and residential parks team providing a wide range of advice to park owners