Private renters to benefit as new law bans letting agent fees
Families could be saved hundreds of pounds as “unfair” letting agent fees are scrapped in a move that has been hailed as a “win for renters”.
Private renters will no longer have to pay letting agent fees as the Tenant Fees Act comes into effect today.
Charities have welcomed the ban on fees, which means renters cannot be charged fees for looking around a property, setting up a tenancy – such as for referencing or credit checks, or for check-out.
According to Citizens Advice, private renters in England have been paying £13 million a month in letting fees, and have paid out a total of £234 million since the government committed to banning them in November 2017.
Chief executive Gillian Guy said: “The end of these uncompetitive and unfair letting fees is a real win for renters.
“The new law means families and other renters don’t have to hand over hundreds of pounds every time they move home.
“We look forward to working with the Government to further strengthen the hand of renters in a market where they have little bargaining power.”
As well as scrapping the letting agent fees, Citizens Advice had also urged legislators to reduce the amount of money required for a deposit from six weeks’ rent to four weeks.
The final Bill compromised on a deposit worth five weeks’ rent.