Private renters in England are expected to spend a total of
£154m on tenant fees before the ban comes into
force on 1st June 2019, according to analysis by lobby group
Generation Rent, on behalf of The Sun.
However, renters must be aware that tenant fees vary hugely
across the country, with some letting agencies charging significantly higher
prices for their services than others.
Letting agents can currently charge tenants for services
such as referencing, viewing a property and processing fees, but, under the new
rules, they will only be able to charge for tenant damages, if the tenant loses
their keys and for late rent payment.
Following its passage
through the House of Commons last week, the start date of the tenant fees
ban has been set for 1st June 2019. This means that any private
tenants who sign contracts after this date in England won’t have to pay any upfront
However, up until that date, tenants are still liable to pay
fees. Generation Rent, on behalf of The
Sun, has calculated that renters will spend roughly £154m on fees before
the ban comes into force.
This was based on the average household of two adults paying
£404 in lettings fees when moving home. Renewals typically cost £117, while
check-out fees average £121.
There are currently around 4.7m private renter households in the UK, with 25% of these moving home in 2016/17, according to the latest English Housing Survey.
Tenants in the UK face a lottery when it comes to the fees
that they’ll be charged once they choose a property that they like, with
Kinleigh Folkard & Hayward found to be the most expensive – the smallest of
the 20 biggest agencies in the country.
Included in its fees are charges of £360 to set up a
tenancy, another £300 if tenants need to move out early and change the name on
the contract, or another £300 if they’d like to renew their tenancy.
Meanwhile, other agencies charge £90 to renew a contract.
Foxtons, which used to be among the four most expensive
agencies, has dropped to eighth place, after reducing its tenancy set-up fees
from £420 to £250 per person.
The Sun looked
into the 20 biggest agencies in the UK, based on the number of available properties
to let in October last year.
Online agent Purplebricks had the most – 21,000 properties –
but was also the cheapest.
At present, all letting agents are legally required to
publish their fees both online and in their offices.