The Association of Residential Letting Agents (ARLA) has come out fighting on the fees ban, saying it opposes a total ban and that fess should instead be spread out over the first six months of the tenancy. It also says a ban is likely to have shocking consequences for the industry, tenants, landlords and the wider economy.

ARLA has also completed research that it says shows 42% of letting agents think their headcount will reduce following a total ban, while 62% of the 1008 agents it canvassed think a ban will prompt a reduction in rental property quality, and 61% believe property management standards will drop.

The research also reveals that letting agents “overwhelmingly” believe that rents will rise if a total ban is introduced, as they will “need to recoup the costs it takes to undertake the important jobs that fees currently cover [and] pass these on to landlords”, the research says.

Agents spend eight hours on average completing the tasks needed to prepare a tenancy agreement including completing credit checks and collecting references, ARLA says.

ARLA also claims that spreading the cost of fees to tenants over six months would make tenancies more affordable, enable agents to maintain current service levels and mean there would be no need for further fees to renew contracts.

“When the Chancellor announced a full ban on letting agent fees in the Autumn Statement, we called the measure draconian and a crowd-pleaser. We stand by that,” says David Cox, ARLA’s managing director (pictured).

“Nonetheless, we believe that ARLA’s proposal to spread the cost of the fees across the first six months of the tenancy will guard against the numerous unintended consequences of a full ban while also finding a solution that works best for the consumer.”