Those involved in the rented sector should note that on residential tenancies, with effect from the 1st June 2019 there has been a cap on tenancy deposits. The maximum deposit that can be taken is 5 weeks rent unless the annual rent is £50,000 or more when 6 weeks rent can be taken.
More than this will be a prohibited payment which means that if you are a Landlord or Letting Agent you will be committing a civil offence and could be prosecuted with a fine of up to £5,000, the Council can as an alternative impose a financial penalty charge of up to £30,000 and you will not be able to use Section 21 as the exit mechanism for a tenancy unless the payment has been refunded to the Tenant.
The additional payment can also be recovered by Tenants or Licensees applying to a First Tier Tribunal.
It is therefore very important when calculating deposits that you make sure that you do not exceed the permitted amount and if necessary round down any numbers which result - Mark Ollier