Private sector landlords in the UK were concerned when the government showed signs of raising the proposed licensing fee for rented properties occupied by five or more tenants.

When the fee jumped 60% - from an expected £110 per bedspace to a massive £180 - they feared the government was going back on its word.

Now - with six months to go before the controversial new Housing Act is implemented - the upper limit has been removed altogether.

"After months of consultation the government has now completely reneged on its proposal to cap the fee - which proves they can't be trusted," says Mark Butterworth, a director of the leading Residential Landlords Association whose professional members own over 100,000 private rented properties throughout the UK.

"It can only undermine confidence in the private rented sector and force some landlords to sell their 'houses in multiple occupation' altogether while others could raise rents to cover the cost.

"The politicians behind this are completely without scruples and seem determined to legislate the private rented sector out of existence by loading it with red tape and administrative costs until property investment loses its viability altogether."

The news - "we will not specify a cap on licence fees at this stage" - came in a 100-page e-mail from the Minister for Housing and Planning, Keith Hill.

This, despite opposition to a cap from only 11% of authorities, tenants' groups and landlords' organisations including the RLA, who were involved in the consultation process leading up to Royal Assent for the Housing Act last November.

The licensing fees apply to more than 300,000 UK 'houses in multiple occupation' which include houses and flats, rented to tenants such as student nurses, trainee teachers, students and post graduates.

The Residential Landlords Association (tel: 0845 666 5000) is a leading national organisation for professional landlords, residential property investors and self-managers - with members owning over 100,000 properties in the UK private rented sector. The range of members' services - on www.rla.org.uk - includes legal advice, insurance, financial services, credit referencing and training. For tenants there is www.tenantdocs.co.uk - where tips include a free download of the RLA's award-winning Plain English tenancy agreement. The RLA operates a web-based property search on www.homes2rent.net and publishes the bi-monthly Residential Property Investor magazine.

For further press information and interviews please contact

Brian Johnson at Powell Communications - tel: 0161 834 9836, fax: 0161 839 2660; brian.johnson@powell-pr.co.uk