Leading local estate agent Aston Mead has welcomed the outcome of the House of Commons vote on banning letting agents from being able to charge fees to tenants.

The proposal was tabled by the Labour Party as an amendment to the Consumer Rights Bill today (Tuesday 13 May) but was defeated by 281 votes to 228.

Responding to the outcome of the vote, Aston Mead Managing Director Charles Hesse said: “This ridiculous proposal was at base profoundly anti-tenant, and I’m relieved that the House of Commons has seen sense and voted against it. It’s a victory not only for the industry, but also for tenants themselves, who would have been lumbered with higher rents, less transparency, and a diminished rental supply as a result.”

Mr Hesse explained that there are real costs incurred in setting up a tenancy, such as administration, checking references, and drawing up inventories, which have to be borne either by tenant or landlord.

He continued: “The last thing we want to see is these costs becoming a hidden part of an increased monthly rent, rather than a clearly identified separate fee. Ultimately, this move could even have threatened the number of rental properties available, because some landlords would have decided that business was no longer profitable, and would have left the market altogether.”

Aston Mead’s comments come after the company welcomed last month’s Government announcement that all lettings agents and property management companies will soon be forced to join one of three compensation schemes, which have the power to investigate complaints and provide redress to tenants.

Aston Mead has been a member of ARLA – the Association of Residential Letting Agents - since the company’s inception fourteen years ago.