A proposed ban on letting agents’ fees for tenants has been confirmed by the Queen in The Queen’s Speech, the formal ceremony which signals the start of the Parliamentary year.
The government hopes the ban will give renters a ‘fairer deal’, while encouraging transparency and greater competition in the sector.
A draft Tenants’ Fees Bill will be published ‘later this year’, and the bill is likely to be passed as it has cross-party support.
The bill will ban landlords and letting agents from charging tenants fees. It will also cap deposits at a maximum of one month’s rent.
A planned ban on letting agents’ fees for tenants was first announced by Chancellor Philip Hammond at the Autumn Statement in November 2016. Following this announcement, many within the sector said the ban would simply drive up rents for tenants.
David Cox, Chief Executive of ARLA Propertymark, called the announcement in The Queen’s Speech “disappointing”.
He claimed a ban on letting agents’ fees for tenants will “ultimately result in the costs being passed on to tenants.”
The fees letting agents currently charge to tenants cover various administrative costs, including reference checks, right-to-rent (immigration) checks, credit checks, and inventories.
Andrew Reeves letting agents have always charged some of the lowest tenant fees in London and, unlike some competitors, have never charged additional ‘administration’ fees or right-to-rent fees. We will continue to keep costs as low as possible for landlord’s when this bill is enacted. Our focus is on professionalism, honesty and the relentless pursuit of excellence.
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