Deputy Prime Minister Nick Clegg unveiled his plan during yesterday’s Commons question session following calls from Labour deputy leader Harriet Harman to ban agencies charging tenants as well as landlords.

Clegg agreed there was a ‘problem’ over agencies’ charges but said scrapping tenant fees may lead to higher rental costs.

“That is why we will be announcing today that we will be placing new obligations on agents to publish in full transparency what kind of fees they are charging so people can shop around and get the best deal available,” he said.

Harman said transparency “is not good enough” and warned agents needed to be prevented from ripping tenants off with dual charging.

But lettings agents have argued that by removing the up-front fees tenants must pay to arrange their tenancy landlords would be left to shoulder the bill which would be offset by higher rents.