The Government are banning letting agents fees under the new Autumn Statement.
Chancellor Phillip Hammond announced this yesterday, and said it would be put into place as soon as possible, after consultation.
Letting agent fees have always been a point of contention between tenants and landlords.
Nick Scarlett, who rents in Upperthorpe, Sheffield, said “The fees charged by letting agents are among the most unjust and unfair I can think of,
“I recently paid £300 for a company to effectively read an email and do a credit check (which wasn’t even done!). Hopefully this is good news for tenants and doesn’t lead to an increase in rents.”
Another renter, Lisa Preece, echos this concern, saying “I hope the scrap of letting agent fees has a real impact on the cost of moving, rather than landlords just adding the prices onto the rent we have to pay each month.”
Letting fees differ greatly between companies in Sheffield. At the higher end, Blundells charge an admin fee of £50 per tenant, a £75 referencing fee per tenant, a check out fee at a minimum of £72 and a £300 charge for a tenant agreement.
In comparison, Cactus charge £150+ VAT application fee for 1-2 people.
Scotland banned letting agent fees in 2012, and it was reported that rent rose by over 4%. According to figures from Your Move, the average rent price in Scotland is £539 a month. In the Yorkshire and the Humber, the average currently sits at £556 a month.