Tenants will save £192 million every year under the Tenant Fees ban, research reveals.
The findings from Bunk, a rental platform, used government data to analyse the 860,000 new rent transactions that are carried out every year, with the average tenant having to fork out £223 in fees before the ban came into effect.
However, now the Tenant Fees Act 2019 has become law, letting agents and landlords are no longer permitted to charge a tenant fees, which the research reveals will save tenants around £192 million a year.
The firm's chief executive, Tom Woollard, said: "For too long, agents have been writing the rules for fees being charged to tenants which has left a sour taste for many people in the rental sector.
"The tenant fees ban is right and we have clear legislation that landlords, letting agents and tenants can adhere to."
Recoup lost revenue by charging landlords more
Mr Woollard also says that fears that rents will increase substantially because of the fees ban as it will now lead to agents wanting recoup their lost revenue by charging landlords more in service charges is 'laughable'.
He added: "Hopefully, this will act as a catalyst to show the sector can provide a service for a reasonable fee and that agents have value where innovation and technology will render them obsolete."
A study carried out by the Association of Residential Letting Agents recently highlighted that 70% of members said they were looking to increase costs for landlords because of the tenant fees ban.
And 87% of agents say rent prices will rise because of the ban which will, they say, put pressure on some of the most vulnerable tenants in the country.
Lender sees a rise in limited company BTL business
Meanwhile, Foundation Home Loans says it has seen a big rise in the number of limited company and portfolio landlords doing business with it.
Over the past year, the specialist lender says there's been a 130% increase in limited companies applying for BTL loans.
In a bid to meet this growing demand, the lender has now launched a five-year fixed 'remortgage special' product that is aimed at limited companies, portfolio landlords and individuals.
The firm's director of marketing, Jeff Knight, said: "We are seeing a big interest in the market and will continue developing our proposition for meeting the needs of clients and intermediary partners."
