Renters: you could be OWED £117 by your landlord

Tenants who moved into their homes before the Tenant Fees Act was introduced in June 2019 could still be due a deposit refund when renewing their terms.

The new Tenant Fees Act decrees that landlords and letting agents cannot charge a deposit of more than five weeks’ rent. This means that when tenants renew their contract after 1st June 2019, any deposit initially paid that’s over the figure of five weeks’ rent must be returned.

According to the Valuation Office, the average monthly rent in England in March was £858. So, the new maximum permitted tenancy deposit of this would be £990.

But, as found by by Generation Rent under the Freedom of Information Act, the average deposit in approved protection schemes is £1,107.90 – a difference with the five-week average of £117.90.

What can I do if I think I’m owed money?

If you paid a bigger deposit than five weeks’ rent, and renewed your tenancy after 1st June 2019, you should now be able to get the difference back – a partial refund of your deposit.

The landlord should arrange this when they renew your contract under the new legislation, but if they don’t, you can challenge them.

The first step would be to write to your landlord or agent asking them to return the fee. If you like, you can use the template shown on page 78 of the Government’s guidance.

If that doesn’t work, you can complain about your letting agent to a redress scheme. All letting agents must belong to a Government-approved redress scheme, which offer a free, independent dispute resolution service. You should be able to find the details of your agent’s redress scheme on their website, or just ask them directly.

If you’re still having no joy, or it was a landlord who charged the fee, contact your local authority. The authority can take action against your landlord or letting agent, and order them to repay the fee.

As a last resort, the First-Tier Tribunal, part of the courts system, can also order a landlord or letting agent to repay fees. You might have to pay a fee to use this service, though, so only use it if you’ve exhausted all other options and you’re positive you’ve been overcharged.

It’s also really important to keep evidence that you’ve paid the fee, such as written confirmations from the landlord or agent, receipts or bank statements, as proof for when you challenge it.