Permitted Payments

Tenant Fees Bill – in the House of Commons at 4:49 pm on 5th September 2018.

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Amendment proposed: 3, page 23, in line 30, leave out paragraph 4 and insert—

“Payment of Landlord or Agent expenses

4 (1) A payment that a tenant is required to make to cover a landlord’s or agent’s reasonable loss arising from a breach of a fair condition of the tenancy agreement by the tenant is a permitted payment.

(2) In this paragraph a “fair condition” is one that relates to—

(a) the replacement cost of a lost key or security device, or

(b) payment of the amount of late rent payments and interest relating to those payments arising under or in connection with the tenancy.

(3) Paragraph 4(2)(a) does not apply if the payment required—

(a) pertains to rent that was paid within 14 days of the date due under the tenancy agreement, or

(b) exceeds the interest at Bank of England base rate on the rent from the day the rent was due to the day it was paid.

(4) Paragraph 4(2)(b) does not apply if the condition in the tenancy agreement prescribes a fixed fee to be paid for each breach of this term.”

This amendment would remove default fees as a permitted payment and permit the payment of landlord and agent expenses where there is a clear cost due to a tenant fault.—(Melanie Onn.)

The House divided:

Ayes 241, Noes 302.

Division number 234

See full list of votes (From The Public Whip)

Aye

No

Question accordingly negatived.

Schedule 1