Letting agent management fees to be banned?

Liam O’Shea, Director & Solicitor in Astle Paterson Solicitors’ Litigation & Dispute Resolution department discusses the Government’s plans for agent management fees to be banned.

Liam said “A Tenants’ Fees Bill is set to be introduced to Parliament seeking to ban landlords and their letting agents from requiring tenants to pay to them letting fees as a stipulation of their tenancy.   These fees are taken from tenants, for example, for references, investigating immigration status, and obtaining credit checks.

Letting agents believe that a ban on letting agent fees will cost the sector jobs, make buy-to-let investment an unappealing prospect and may ultimately result in the costs being passed on to tenants in order to compensate for money charged to the landlord.”

Liam continued, “However, new rules under the Bill would allow tenants to recover any fees that have been charged unlawfully and, the Government have said, will make the letting process more transparent as currently renters are charged varying amounts by their letting agents.

Indeed, Government research has found that 42% of people paying letting agents’ fees had to borrow money to pay them with the average charged amount being £223 and the magnitude of households paying this fee nears to £4.3 million per year.”

Liam concluded “A consultation on banning letting fees has now closed and the responses will be used to inform the draft Bill which is scheduled to be published later this year.”

At Astle Paterson we have specialist Landlord and Tenant legal knowledge and experience. Please contact our Liam O’Shea on 01283 531366 or by email at to discuss any issues you may have concerning your buy-to-let.   

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