Plans to ban letting agent fees unveiled

The plans come amid concerns over the rising costs of 'unfair fees', as housing charity Shelter found that 1 in 7 tenants are charged over £500 by agents. The consultation, which will run for eight weeks, confirms plans previously announced by the Chancellor in the Autumn Statement.

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What's being proposed

Here are the main measures being consulted on:

• No admin fees to be charged by agents for initiation, renewal, or continuation of tenancies.

• No admin fees from landlords or third parties – to prevent 'back door' fees via other means.

• A potential cap on deposit sizes.

• Support for alternative schemes to asking tenants for upfront deposits.

Housing Minister Gavin Barwell said: "Tenants should only be required to pay their rent alongside a refundable deposit and not face hidden fees."

Alternatives to upfront deposits under consideration include paying in monthly instalments or blocking an agreed amount on a tenant's credit card.

Tenants may still be charged holding deposits to take a property off the market while reference checks are carried out, however. Equally, tenants will still be expected to pay for management services carried out as a result of their actions or at their request, such as fees for late rental payments or the replacement of keys.