Caitlin Tew of Watkins & Gunn Solicitors reports on the Government’s plans to impose a ban on excessive letting agent fees.

During the Autumn Statement in 2016, the Chancellor announced plans to ban letting agent fees.  It is hoped that a consultation will soon take place in order to impose a ban.

Many letting agents simply charge tenants the cost of items such as checking references, but other, more unscrupulous agents, impose extra charges on the checks that they carry out, and for administrative work in preparing contracts and inventories. It is these additional charges that will be targeted by the Government with the aim of reducing the amount of fees paid by tenants to the agents.

Agents have been accused of taking advantage of the housing crisis to squeeze extra money from people desperate to secure accommodation. Citizens Advice Bureau figures, based on a survey of tenants, suggest the average letting agent fee has risen by 60% over the last 5 years with some asked to pay up to £700.

A clampdown of such excessive fees will serve as a welcome relief for many in private rented accommodation. However, there is a danger that imposing such a ban may lead to rent prices increasing as agents may shift their fees on to landlords, who, in turn, may then increase the price of rent for the tenant.

The ban has already been imposed in Scotland, but there is no confirmed date for the ban in England and Wales yet, but Chancellor Hammond said it would be introduced “as soon as possible”. So we await further news as they work towards implementing a ban.

This article is for general information purposes only and does not constitute legal or professional advice. For more information contact Watkins & Gunn Solicitors on 01633 262122 or visit to our website www.watkinsandgunn.co.uk