The NALS-organised industry Fair Fees Forum has had its request for a letting fees ban review rejected by the Competition and Markets Authority (CMA), which says there is too little time to complete it.

“Given the pivotal role played by the private rented sector, we feel this decision is a missed opportunity to review the way the sector works to deliver the best outcome for all concerned,” says Isobel Thompson (pictured, below), Chief Executive of the National Approved Letting Scheme (NALS).

Irreparable damage

The CMA decision not to get involved comes despite the Forum warning that great care must be taken not to cause “irreparable damage” to this part of the private rented sector by rushing through a ban without “fully considering the impact on the sector.”

The news may surprise many in the industry who had been led to believe that after the soon-to-be published results of the consultation – and given both the pressures on parliamentary time and the need for primary legislations to impose a ban – it was unlikely that one would be introduced until next year.

This would have given the CMA plenty of time to review the details of the ban.

“This is disappointing news for the Forum, which strongly believes a CMA review would provide much-needed analysis on fees and charges and the wider operation of the market,” a statement from the Forum says.

“Such impartial, independent analysis would help inform the legislation the government intends to bring forward.”

But CMA did not entirely sweep the industry aside, and the Forum’s chair Sheila Drew Smith (pictured, right) says the industry group will have the chance to review the ban for any “unintended consequences on competition” and that the CMA will take into account any paper evidence submissions from Forum members.