The proposed ban on letting agent fees for tenants was raised in The Queen’s Speech, with a draft bill due to be published ‘later this year’.

letting fees ban to be published

The new Tenants’ Fees Bill will prevent tenants from having to pay letting agent charges, which typically cover credit and reference checks, inventories and other administration costs.

The government’s plan to ban charges for tenants was first raised by Chancellor Philip Hammond during last November’s Autumn Statement, where he said a ban would be introduced ‘as soon as possible’.

In the wake of the Autumn Statement, many within the industry said the ban would likely lead to rent rises. This has been reiterated by ARLA Propertymark, the professional body that represents letting agents, in the wake of The Queen’s Speech.

ARLA Chief Executive, David Cox, said the “disappointing” ban would see costs passed onto tenants, while jobs within the sector might be put at risk.

The letting fees ban aims to make the rental sector more transparent for tenants, especially as the amount tenants are charged by letting agents varies hugely. The ban will also make it easier for tenants to move to a new property, should they need to, without the worry of extra fees to pay on top of a deposit.

A similar ban was introduced in Scotland in 2012.

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About the author

Nicolas Holmes

Nick joined Robert Holmes to inject fresh ideas and help grow the New Homes department of Robert Holmes as well as helping to inject technology into the business and to grow its client base. Together with one of the Directors Nick is in charge of all Development opportunities that Robert Holmes deals with along with sales. Aged 40, he provides succession together with the two existing directors. Nick has always been focused on building client relationships and sales. He built up his own gallery in Chelsea, where he had a loyal following of customers and artists.

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