Fees ban will make rents go up, say half of tenants and landlords

Four in ten tenants and landlords are unaware of the fees ban which comes into effect this Saturday.

A survey of just over 1,000 people earlier this month found that 17% thought the Tenants Fees Act would bring in rather than abolish fees.

The survey, conducted by insurance firm Just Landlords, found that while 41% are aware of the ban, many are sceptical as to how they will benefit, and half (49%) believe rents will go up as a result.

Rose Jinks of Just Landlords said: “There has been a lot of talk within the property industry that landlords will increase rent prices as a result of the tenant fees ban, as they look to recoup potentially higher charges imposed by letting agents.

“It is clear that our respondents felt the same.

“Rents will go up, causing the Government’s efforts to make renting cheaper fall flat on its face.”

The survey asked 1,011 adults involved in the private rented sector for their views.

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  1. Will2

    Unseen consequences? Only if you have a “government mentality”.  Abolition of S21 to give tenants more security will reduce supply and make it more difficult for tenants to find somewhere to rent to start with thereby benefitting a few whilst the many will lose out completely. Tenant utopia does not exist.

  2. Woodentop

    9 in 10 haven’t a clue about what’s on the horizon with potential abolition of Sec 21 and AST’s, it’s consequences, risks and incoming protected tenancies.

  3. Letting agent 101

    Of course rents will go up.   We are already doing this and our tenants are the ones who will be out of pocket.  The landlord will be earning a little more and our fees will be covered by our landlords.


    Well done government you bunch of f__kwits.

  4. Propertee

    My worry with the effects of the fee ban is that should rents go up too much then the government (certainly if Labour get in) would look to introduce rent caps which obviously would bring the industry to it’s knees. The government have set the industry on a path that will put plenty of people out of business and this could only get worse dependant on how much they further they decide to mess with it.

    1. CoastLet

      Sadly I think that rent capping, longer minimum fixed term tenancies and abolition of S21 are all inevitable….certainly as you say if the dire Labour party get in. But I fear that the Tories also in their current state will seek to employ copycat policies in a bid to cheaply win the votes of generation rent with not a thought for the knock-on effects of such legislation.

      You only have to look at the Fee ban (originally a Labour manifesto policy) to see evidence of this.

  5. lee10c

    The whole fee ban is a short sighted government strategy.

    A cap on fee’s would have worked much better all round.

  6. JohnGell

    Ultimately the market will constrain increases.

    In Scotland, where tenant fees have been unlawful since 1988 and that position was upheld following consultation a few years ago, and where we no longer have the abilty to end a tenancy without reason on or after a contracual end date, rental values haven’t increased significantly.  Life continues pretty much as before, with tenants moving on when they have a need to do so.

    Where there have been sigificant rent increases, such as in Edinburgh, this has been because of particular local supply and demand factors.

    The loss of S21 will tend to professionalise the sector, by obliging mediocre landlords and agents to take a more rigorous approach to tenant selection rather than “switching tenants” if they get it wrong.

  7. Simonr6608

    That was pretty self evident, I deal with a lot of village homes most of which have chimneys, previously our tenancy agreement stated that tenants had to have the chimney swept a minimum of once a year. We can no longer have that clause so all relevant properties will have the rent increased by £10 so the tenants will now pay £120 pa extra in rent instead of £60 pa for a chimney sweep.

    1. CoastLet

      Funny you should say that I’m just looking at the very same thing myself within our tenancy agreements!….do you have any properties with Septic Tanks?! I’m wondering if we can expect that the tenants continue to pay for the emptying of these or whether this would become a prohibited payment to a 3rd party or is it reasonable to suggest this should come under the ‘utility’ banner?!

      1. qweasdzxc

        Sewerage comes under utilities so I think it is OK to make the tenant empty a septic tank.

  8. TheAgent48

    We have had a blanket increase across the board for all our tenants of between £20 and £25 per month,  Not to mention the new pet premium of £20 per month per pet.

    The whole fee ban was designed to be headline grabbing and vote winning, after all it was Labour policy that has been stolen for votes by the now left of center Conservative party.

    Let’s also not forget that landlords are now leaving the sector in droves driven out by legislation, the fee ban, tax on mortgages, fear of Section 21 ban!  Do government not realise that as rental stock diminishes with demand remaining the same rents will rise?  It is simple supply and demand economics.

    It’s actually ridiculous policy and housing ministers should have visited letting agents to see what actually happens in reality.

    The bad transient tenants will probably not lose out that much, but if you are a long term tenant with a pet things have just got a lot more expensive at least £480 per year extra!

    No pet deposit now, ok the rent will have a £20 premium pretty simple.  £240 per year every year.

    No late payment charges now only a derisory 3.75% APR interest, tenants take advantage of the new landlord pay day loan scheme.  I just got an email from HSBC offering a Credit Card with a 21.9% APR, but landlords now offer cheap finance of 3.75% APR, fantastic!!!

    When the tenant hits 2 month arrears at day 31, simply instruct a Solicitor to issue a Section 8 notice and put the £100-£300 cost on the tenants bill.  It’s not a charge it’s a cost to landlord.


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