Ban on tenant fees delivers another blow to landlords

tenant fees

Tenant fees have been banned.  The move was announced in Philip Hammond’s first Autumn Statement last week and has delivered another damning blow to landlords.

As we’ve discussed previously, recent changes have already put a squeeze on landlord profit margin.  Now the ban on tenant fees has been brought in, things just seem to be getting worse.

What are tenant fees?

Previously, tenant fees could be charged by letting agents to cover the administrative costs of a new tenancy.  These administrative costs would include the checking of references, inventories and drafting contracts.  According to Citizens Advice, the average tenant fees cost around £337.  Housing charity Shelter claims they can reach as much as £500.

Quick Move Now’s managing director, Danny Luke, says:

The tenant fees announcement that came as part of the Autumn Statement is more bad news for landlords.  Already under financial pressure from tax relief changes, increased stamp duty and new wear and tear rulings, this is not the news landlords were hoping for.

Whilst the tenant fees ban has been implemented in an attempt to help tenants, ultimately this can only be bad news for them.  Many landlords are already struggling to keep their business profitable.  These landlords will have little choice but to pass the tenancy costs back to the tenant by increasing rent.  Tenant fees were abolished in Scotland in 2012 and we saw rents rise by 2.3% across Scotland.  Areas such as Edinburgh and Aberdeen saw even higher increases, 5.1% and 6.3% respectively*.

As we’ve previously reported, rent arrears are already a well-established problem.  With both landlords and tenants feeling financial pressure, serious questions need to be asked about the future of property rentals.

As many as one-in-four landlords have said they either have sold, or are planning to sell their buy-to-let property as a result of the tax relief changes.  Placing more financial pressure on landlords is only going to compound that issue and lead to a greater shortage of rental properties.

*Scottish rent rise data from Citylets

This content was written by Quick Move Now
Published on 29th November 2016
Last updated on 17th August 2018

Get an instant free estimate

We have £6,354,923 instantly available right now to buy your house

  • Property Details
  • Contact Details
  • Your Quote
  • 1 Property Details
  • 2 Contact Details
  • 3 Your Quote

No risk free quote

  • Guaranteed sale
  • Become chain free
  • No fees
  • Please select yes to agree to our terms of data collection to proceed.

Terms of data collection

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Curabitur eget consequat lectus. Suspendisse vitae vestibulum mi. Suspendisse maximus mauris vel nunc sodales dapibus. Etiam ornare neque non purus ullamcorper, sit amet elementum libero laoreet. In quis sodales ex. Curabitur ultricies ex et leo euismod dapibus. Nam vel sem finibus, semper purus sed, vestibulum ligula. Interdum et malesuada fames ac ante ipsum primis in faucibus. Duis ut elementum quam, a cursus diam. Nunc urna felis, consectetur ut fringilla eleifend, blandit id odio. Sed mattis leo non metus suscipit tristique. Fusce lacinia erat ac dolor rhoncus blandit. Maecenas lobortis commodo libero, non semper nunc vestibulum eu. Morbi eu interdum libero. Fusce rhoncus faucibus est vel blandit. Donec eget erat vitae neque scelerisque aliquet id ac metus.

Donec non dui vitae elit feugiat rhoncus eget in elit. Mauris pharetra sem enim, gravida auctor dui aliquet a. Donec mollis dignissim risus eget pharetra. Nullam condimentum massa nulla. Etiam id sollicitudin libero. Nunc ligula ante, cursus eu euismod nec, congue eu neque. Nullam suscipit ante ipsum, nec vulputate justo semper eget. Pellentesque sit amet orci ac urna sollicitudin cursus sed vitae leo.

Curabitur lorem tortor, consequat nec elementum eu, convallis a velit. Ut ac consequat orci. Morbi id vestibulum leo. Praesent pellentesque efficitur quam eu scelerisque. Duis pulvinar molestie maximus. Phasellus a mattis enim. Vestibulum ullamcorper, odio vel lacinia mattis, dui orci volutpat massa, sit amet ornare felis ipsum at ligula. Duis pretium in nisi id hendrerit. Nunc ornare nunc et dolor vehicula, sit amet congue nisl viverra.

Back to property details

Your free, no obligation estimate request has been successfully submitted.

One of our property experts will be in touch shortly to discuss your requirements in more detail.

Call us on

0800 068 3366

or we will call you


Property Ombudsman Logo National Association Property Buyers Logo Chartered Trading Standards Institute Logo British Property Federation Logo


Quick Move Now
Interface Business Park,
Floor One, Unit 15,
Royal Wootton Bassett,

Get your cash offer now

9 Days
17 Hours
14 Minutes

You're currently offline