CAMPAIGNERS described a government move to ban fees for tenants as 'a welcome move which will benefit the whole city' - but there are fears that rent prices could go up as a result.

Oxford Citizens Advice Bureau director Al Bell said Chancellor Philip Hammond’s announcement in yesterday’s Autumn Statement was 'a success for all tenants everywhere'.

Mr Hammond vowed to stop lettings agencies charging would-be tenants hundreds of pounds for credit checks and inventories.

He told Parliament: “In the private rental market, letting agents are currently able to charge unregulated fees to tenants.

“We have seen these fees spiral, often to hundreds of pounds.

And he added: “This is wrong. Landlords appoint letting agents and landlords should meet their fees.

“We will ban fees to tenants as soon as possible.”

A new report, set to be published at the end of this week, lays bare the extent to which tenants are being charged.

Mystery shoppers, working undercover on behalf of the CAB, investigated 42 letting agents in Oxford.

More than half charged a flat-rate admin fee from £120 to £360.

One asked for £600 to reserve the rental property, before any contract was signed or finalised.

The report also found a 'significant number' of letting agents do not display fees in a prominent place in their offices, as required by the Consumer Rights Act 2015.

Ms Bell said: “Oxford is so densely populated with tenants it will benefit the whole city.

“Some people are not happy but they can’t move because of the high cost.”

But Oxford’s letting agents said admin costs were likely to be passed on to landlords, ultimately pushing up rental prices.

Robin Swailes, founder and managing director of North Oxford Property Services in Walton Street said his firm would act as soon as possible to comply with the new rules.

But he warned landlords, who have already been hit by cuts in mortgage relief rate and higher stamp duty on buy-to-let properties, may decide to cut their losses.

He said: “This is a good thing fundamentally but it will ultimately means a shortage of rental properties and prices will go up.

“The only solution to this problem is to build more houses, not pressurise a system which is already at breaking point.”

Property services boss and former candidate of TV’s The Apprentice Michelle Niziol, said the Chancellor had made a mistake.

She said: “I don’t think it’s the way to go.

“There’s an awful lot of work involved in checking out tennants in terms of credit checks and references.”

Ms Niziol, who runs IMS Property Services, said if agencies did not charge fees, they would find themselves out of pocket.

She added: “I get frustrated because I feel we are being penalised.

“There are a lot of rogue lettings agents who take tenants’ money when they know they are not going to pass references but that is not the case with my business.

“The answer is to regulate the lettings agency market.”

Mark Charter of Carter Jonas said the Chancellor’s decision would be bad for owners of amateur landlords.

He explained: “Quite a lot of landlords have just one unit and are normal people.

“The property is part of their pension or supplementing their income.

“This is going to increase the cost to ordinary people who are landlords, such as older, retirees who rely on a property for their income.”