The Ban on Letting Agent Fees

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On Tuesday 2 May 2018 the Government introduced the Tenant Fees Bill to Parliament.

The Tenant Fees Bill reflects feedback from the recent public consultation which ran from April to June 2017 and received over 4,700 responses.

A draft Tenant Fees Bill was published on 1 November 2017 and was followed by pre-legislative scrutiny by the Housing, Communities and Local Government Select Committee who published their report on 29 March 2018. 

The Tenant Fees Bill is now subject to Parliamentary timetables and will be introduced in law next year.




On Tuesday 12 June 2018 the Welsh Government introduced the Renting Homes (Fees etc.) (Wales) Bill to ban fees charged in the private rented sector. 

The Bill will ban tenants from being charged for an accompanied viewing, receiving an inventory, signing a contract, or renewing a tenancy. It will allow letting agents and landlords to only charge fees relating to rent, security deposits, holding deposits, or when a tenant breaches a contract.

The Bill will also provide a regulation-making power to limit the level of security deposits and cap holding deposits to the equivalent of one week’s rent.


Preparing Your Business

Industry leaders and suppliers are presenting a wide range of offers in response to the Draft Tenant Fees Bill. While ARLA Propertymark does not endorse these plans, letting agents need to consider a wide variety of suggestions covering all areas of their business, before making changes to their own business model.

The legislation is in draft form, it is still subject to amendments which will shape any eventual Act of Parliament and letting agents need to continue to talk to MPs to ensure that legislators understand all of the issues – not simply the headlines – before passing anything into law.  Letting agents need to be aware that while many of the ideas presented will support agents in delivering a quality service despite not being able to charge fees to tenants, some of the ideas currently being offered as solutions may also be subject to an eventual ban.

Property Agents Circle
Beating the Tenant Fee Ban, in Your Business

Property Agents Circle has developed a package to help letting agencies beat the Tenant Fee Ban. They will help you optimise your income and get paid for the services you already deliver. While explaining how to structure your agency to streamline processes and ensure quality standards.

Download your copy

Tenant Fee Ban Business Plan

LetMC has been speaking to their customers about the inevitability of the ban on fees and how they intend to deal with it. Following these conversations, LetMC has created a comprehensive 24-page business plan.

Download your copy