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Government Launches Letting Agent Fees Consultation

The government has launched its consultation into the administrative fees that letting agents charge tenants.

In his Autumn Statement, chancellor Philip Hammond unveiled plans to ban letting fees for tenants - a proposal that was strongly supported by housing charity Shelter. The organisation revealed that one in seven tenants had been charged over £500 in agency fees, while on average tenants have to fork out £200.

Now the government has opened its consultation and set out the measures it intends to introduce to make the market fairer for tenants and more competitive. It stressed that the measures target the “small minority of agents” that exploit their position.

Under the proposals, letting agencies will be banned from charging admin fees to tenants for the setup, continuation or renewal of tenancies. The government also plans to ban landlords and other third parties from charging similar fees.

The consultation also wants to clamp down on agents that charge landlords and tenants for the same service, with the government stating that this is good news for landlords as well as renters.

Housing minister Gavin Barwell explained this isn’t the only measure the government is taking to improve the rental market.

“Our housing white paper sets out other ways we will help those renting, including building more homes for rent and providing longer, family-friendly tenancies,” he stated.

The government is also looking at the possibility of introducing a cap on deposits to make up-front costs for tenants more affordable. However, there are some fees that tenants will still have to pay.

These include a refundable holding deposit while reference checks are carried out and any fees for management services, such as providing replacement keys or for late rent payments.

If you’re looking for letting agents in Hartlepool who provide a comprehensive service for tenants and landlords, contact us today.

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