The tenant fees ban will lead to more people moving home when it reduces the cost of renting a property by 50%, it has been claimed.
Rental platform Goodlord says the ban, along with the rise of tenancy deposit alternatives and the reduction of deposits to five weeks’ rent, will cut the cost of moving home for renters significantly.
The proptech firm has analysed 30,000 tenancies processed by its platform and found that the average cost of moving to a rented property is £3,039.
This includes the first month’s rent of £1,092, a rent deposit of £1,442 based on six weeks’ rent, fees of £209 and a refundable holding fee of £296.
“Capitalising on this potential increase in demand will be vital to survive – or thrive – in what will be a challenging period for agencies,” says Goodlord.
“So agencies will need to ensure they’re well-equipped to handle an increase in enquiries and applications to secure the best tenants for their landlords as efficiently as possible.”
ARLA President Peter Savage (left) has also said that many agents will find it easier to cope with the ban than they thought.
“Those that have taken the time to look at their bottom lines are finding that they are able to make up the loss more easily than they first thought because until now they haven’t had to quantify it,” he has said in a blog.
Savage also says that holding or ‘goodwill’ deposits are to become widespread across the industry as agents protect themselves against tenants who may fail referencing.