TENANTS could now save hundreds of pounds as 'unfair' letting agent fees are scrapped.

It's being billed as a 'win for renters' after the the Tenant Fees Act came into force this week.

What does it mean for me?

Private renters will no longer have to pay letting agent fees - which account for about £234 million across England in just 18 months.

These fees used to be charged for things like renewals, references and credit checks - not forgetting the loathed 'admin fee'.

Swindon Advertiser:

Is it a good thing?

Yes, if you're a tenant, but landlords say they will now have to cover the costs in other ways, which include the possibility of higher rent.

Charities have welcomed the ban on fees, which means renters cannot be charged fees for looking around a property, setting up a tenancy – such as for referencing or credit checks, or for check-out.

According to Citizens Advice, private renters in England have been paying £13 million a month in letting fees, and have paid out a total of £234 million since the government committed to banning them in November 2017.

What the experts say

Chief executive Gillian Guy said: “The end of these uncompetitive and unfair letting fees is a real win for renters.

“The new law means families and other renters don’t have to hand over hundreds of pounds every time they move home.

“We look forward to working with the Government to further strengthen the hand of renters in a market where they have little bargaining power.”

As well as scrapping the letting agent fees, Citizens Advice had also urged legislators to reduce the amount of money required for a deposit from six weeks’ rent to four weeks.

The final Bill compromised on a deposit worth five weeks’ rent.

What happens landlords don't comply?

The fine for breaking the Tenant Fees Act can be up to £5,000. 

But landlords who break the rules for a second time within five years could face prosecution and a larger fine.