Rent is set to INCREASE after letting fees are scrapped
1 February 2019, 11:19 | Updated: 1 February 2019, 12:02
The ban on letting fees is due to come into effect on 1 June this year
The long-awaited ban on letting fees could have an affect on rent prices and see them increase by up to £100 a year, it's been claimed.
The Tenancy Fee Bill, which will ban estate agents charging renters for taking on a new agreement and is due to come into effect on 1 June this year, could see Estate Agents miss out on around £200million of tenant fees.
This, combined with new tax laws, reportedly may force landlords to raise rent prices to make up for it.
An expert told The Sun: "Tenants who regularly move homes like students will probably see a saving but tenants who tend to live in properties longer, like families, those on low-income and disabled tenants will see their overall costs increase.
"It's not going to make too much of a difference - you'll no longer be paying fees upfront but the costs will be spread out over your tenancy."
They added that renters still have to fork out upfront costs like a deposit and first month's rent when taking on a new agreement.
"As we've said repeatedly, landlords have faced continued regulatory change and increasing costs over the last few years, and the tenant fees ban will only add to this burden, meaning many will either have to start increasing rents for tenants or exit the market."
The Letting Fee Ban, which passed parliament last week, is now waiting on Royal Assent before becoming law.