Confirmation that letting fees for tenants will be banned

The proposed ban on tenants paying letting agent fees is to go ahead, as confirmed by the Queen during The Queen’s Speech.

The Queen’s Speech, an event which marks?the opening of the new Parliament, reveals the government’s legislative priorities for the coming year. 

The new bill, due to be published ‘later this year’, will prevent letting agents from charging tenants fees. These charges typically cover the cost of administrative work carried out by the letting agent, including credit checks, reference checks, and inventories. 

The government’s plans to impose a ban of this kind were first announced by Chancellor Philip Hammond during the Autumn Statement last November. The announcement was naturally not well received by many in the industry, with some saying the ban would simply lead to rent increases. 

David Cox, Chief Executive of the Association of Residential Letting Agents, said the ban would “ultimately result in the costs being passed on to tenants”, and expressed concern that job losses were on the way. 

Part of the government’s aim with the ban is to increase transparency and fairness in the sector, while making it easier for renters to save for a deposit for a property of their own. It will also make it more affordable for tenants to move to a new rental property, should they need to. 

This ban will apply to tenants in England and Wales. A similar ban was introduced in Scotland in 2012.  

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Property Wire