Landlords should pay letting agents fees, chancellor Philip Hammond said in his first Autumn Statement today.
"We’ve seen these fees spiral despite our attempts to regulate them," Hammond said, confirming that the government will ban letting agents fees.
Some critics have said that the letting agents fees will lead to higher rents as landlords seek to pass on the costs.
Paul Smith, chief executive of haart estate agents, said: "Today's news of a ban in letting agent’s upfront fees is yet another unwelcome and haphazard government intervention in the rental market, which will sadly only lead to a backdoor rent rise for tenants. The cost of administration such as references and inventories that tenant fees would have previously covered are now likely to be passed onto the tenant through their rent."