Government Ban on Letting Agent Fees - Estate Agents Reaction

The Government has announced it wants to ban letting agents from charging fees to tenants.

This may seem like a good idea at first glance, helping to save tenants money, but industry experts here at Nock Deighton say it is more likely to end up costing them more in the long-run.

Dawn Clarke, Nock Deighton’s director of property management and lettings, says the announcement by the Chancellor, Philip Hammond, in his Autumn Statement could give people renting a house in Shropshire an unwelcome surprise.

She says: “This is devastating news for letting agents and is very unlikely to have any benefit for tenants in the long-term.

“The fees which the Government wants to ban cover a wide range of costs, and those will now have to be met by agents elsewhere.

“The vast majority of these fees pay for a range of critical checks and surveys, and these costs will most likely be passed on to landlords who will raise rents to pay for them - ultimately increasing costs for the tenant.

“We would agree with the Association of Residential Lettings Agents (ARLA)'s view that this is likely to have a knock-on effect on the rental property market.

“As usual, this is a policy designed to stop exploitative agents taking advantage of tenants which will actually penalise good letting agents who provide an excellent service to both landlords and tenants.”