The issue of whether letting agents should be allowed to charge fees has been debated for many years. Some believe that these fees are an essential part of the letting process, while others argue that they can be excessive, unnecessary and unfair to tenants.

So, what exactly do we mean by letting agent fees? In addition to the rent and security deposit, letting agents may occasionally charge tenants “letting agent fees”. The costs may cover references, credit checks, and other expenses.

Many letting agents argue that these fees are required to cover the cost of their

services. Without these fees, agents might not be able to continue offering their services since they need to turn a profit to do so. Some letting agents also argue that these costs aid in discouraging inconsiderate tenants from submitting rental applications. Agents ensure that only individuals who are actually interested in a home and can afford it apply by collecting a fee, which ultimately saves time and money for both the agent and landlord.

However, opponents of letting agent fees argue that they are unfair to tenants and should be prohibited. The fact that fees can be extremely expensive, especially for low-income tenants who already have difficulty affording accommodation, is one of the principal defences against them. Especially if they are being charged for services they feel should be included in the rent, tenants may feel the fees are unreasonable. Additionally, detractors claim that the fees put the letting agent and tenant in a conflict of interest. Agents may put their own interests ahead of that of the tenant if they are encouraged to charge fees, which could result in discriminatory treatment.

So, what is the current situation regarding letting agent fees? In 2019, the UK

government introduced a ban on the majority of letting agent fees. Due to the ban letting

agents can no longer charge tenants for services such as credit checks, reference checks,

and inventories. However, some fees are still permitted, such as charges for late rent

payments, early termination of a tenancy, and holding deposits.

The UK’s current ban on letting agent fees has helped to some extent in addressing the issues stated above, but there is still room for discussion regarding what fees, if any, should be permitted.