HOUSING experts in Gloucestershire and South Gloucestershire have reacted to the announcement in yesterday’s Autumn Statement that administration fees for tenants would be banned.

Delivering the statement in parliament, Chancellor Phillip Hammond said that the fees from estate agents “have spiralled, despite attempts to regulate them.”

“This is wrong,” he said. “The government will ban fees for tenants.”

Mr Hammond said the ban would come into effect “as soon as possible”, likely after a consultation period.

“It was expected, but then it is also early days,” said Heather Holloway, lettings manager of Country Property Estate Agents in Chipping Sodbury.

“It is interesting that the government says this will apply to some 4.3million tenants, saving each an estimated £337 in fees each year – our tenant fees are nowhere near that level for each tenant.

“The recent legislation changes have included a Right to Rent check which agents now need to carry out on potential tenants.

“While it is a good thing for the tenants, the general feeling is that this decision will be to the detriment of the landlords, as fees have to be passed onto someone and the most likely effect is that landlord fees will rise.”

The original proposal for the removal of letting agency fees was made by former Labour leader Ed Miliband in 2015.

Stroud District Council leader Cllr Steve Lydon said: “We welcome the Chancellor’s announcement on finally scrapping letting fees – something which was in the last Labour manifesto and which we have been calling on the government to do for years.”

When Ed Miliband first proposed the ban, Conservative local government minister Marcus Jones said: “Banning or capping letting agent fees would not make renting any cheaper for tenants – they’d still end up paying but through higher rents.”

Charity Shelter found that letting fees are on average £300 in the UK.