A new petition has been launched, calling for a reverse of the proposed ban on letting agency fees charged to tenants.
Instead the petition calls for a cap on fees – conceding that some agents do charge “ludicrous fees to tenants”.
However, it goes on: “Tenant fees are a must to survive as a business. We will have to pass on our lost fees to landlords. Speaking to our landlords, they plan to raise their rents to cover their fees immediately.”
The petition has been launched by Rob Farrelly, who co-founded his business, Friend & Farrelly Property Services, in Loughton, Essex, eight years ago when he was 21.
Farrelly told us his firm currently charges a flat £350 plus VAT per property.
He said: “However, our proposal and thoughts are that a cap of £250 plus VAT per property would be a fair fee to cover any administration costs etc.
“I understand some agents have made huge profits with administration charges (charging up to £1,000) and this needs to stop. A cap means agents can still offer the same service to landlords and can still cover their own costs.”
The petition runs until June 4 next year.