The Government's proposed ban on agents’ fees to tenants could result in job losses of between 4,000 – 16,000 in the estate agent sector and related industries according to a detailed study carried out by ARLA on the economic consequences of the ban.
The research revealed letting agent fees to tenants make up one fifth of agent revenues and provide vital funding for imperative checks that are required to set up tenancy agreements.
When tenant fees were banned in Scotland, rents increased and agents also reported carrying out less of the checks they did previously with some, worryingly, saying they no longer carried out credit checks as standard.
ARLA is endeavouring to make the Government aware that the fees charged to tenants are for real work which can take many hours. Whilst some agencies are charging extortionate fees, the majority charge fees that are reasonable and reflect the work carried out.