What are letting agent fees and when will they be banned? Changes to protect tenants outlined in Queen’s Speech
Tenants can pay up to £700 in letting agent fees... but all this is set to change
THOUSANDS of renters get stung by letting agent fees every single year, costing them hundreds of pounds, but all this is set to change.
The Queen's speech confirmed that landlords will no longer be able to pass the cheeky costs onto their tenants - but when does the ruling come into play? Here's what you need to know.
What are letting agent fees?
When a landlord rents a property through a letting agent, the company charges them a number of fees for their services.
However, these fees are nearly always passed onto the tenant - meaning they have to pay hundreds of pounds in extra charges when signing for a property, on top of their security deposit and rent.
These charges often include a mandatory inventory fee, tenancy reference fee, renewal fee, and the agent's own admin fee.
The average tenant pays £233 in fees, but the costs have spiralled over the past five years - with some people now paying a huge £700.