Letting agents will find out the full extent of a price increase in their subscriptions to the Tenancy Deposit Scheme (TDS) this week.
Eddie Hooker, chief executive of pay-as-you-go deposit protection scheme mydeposits.co.uk, said the 23 per cent price increase had raised eyebrows among letting agents.
He said: “I believe this new two-fee instalment model, with the second instalment linked to the number of agent protections requiring Alternative Dispute Resolution (ADR), should be approached with care.”
If letting agents are unfortunate enough to experience disputes with tenants they can expect more price increases, he added.
TDS chairman John Hornsey defended the price increase, saying it was a fairer system of charging letting agents, based on how much they use the system, and claimed the price remained competitive.
Mr Hooker said the price increase showed the decision made last year by the TDS to only accept accredited agents was not working.
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TDS fees are a good thing but hiking up letting agent member fees to counter-act the cost of handling is completely unjustified.