It has been claimed that the 'prophets of doom' who predicted dire consequences when the Tenancy Fees Act was introduced have been proven wrong.
When the law was introduced in 2019, some real estate industry experts warned that rents would rise and jobs would be lost. 
But new research suggests the policy has been successful in limiting some agencies from charging excessive fees. Researchers from the Universities of Warwick and Bocconi in Italy found that agency fees were reduced by an average of £400 per tenant.
charge the landlord
“Before the 2019 law took effect, this led some commentators to worry that agents would instead charge landlords higher prices, which landlords would then pass on to tenants in higher rents. researchers wrote in an article published in The Conversation.
Capital Economics said it expects rents to increase by an average of £103 a year or 16,000 agency jobs to be lost.
Our five-year study shows that this policy did not lead to rent increases. ”
“In fact, our five-year study shows that this policy has not led to rent increases.
“Some letting agents have increased the fees they charge landlords, passing on around 25% of the lost revenue. This has led some landlords to switch letting agents, but the competition is fierce. Much less than expected in the market.”
They said they found no evidence of landlords leaving the market or agents closing.
The reform was successful. ”
“The main effect of capping agency fees is that landlords save an average of £400 per tenant. In other words, the reform has been a success.”
Additionally, the policy does not appear to limit the supply of rental properties.
London estate agent Home London recently succeeded in having a £5,000 fine imposed by the city council over alleged breaches of the Tenant Fees Act be reversed.
Barnet Council claimed that Home London breached the law by only repaying £350 of the £500 deposit.
Tenant fee details
