Today see the chancellor announce a BAN ON TENANT UP-FRONT FEES that are charged Letting Agents.
At 1.25pm today the chancellor has announced that a ban on up front tenant fees to be imposed on Letting Agents.
No letting agent will be able to charge administration fees, inventory fees or referencing fees. This is a welcome change for those tenants looking for a property. The 250,000 tenants who have signed the “Make Renting Fair” petition will be jubilant they are to be banned. Some tenants have reported fees from as little as £80 and as high as £552 for different fees from agencies. Shares in Foxtons and other agents have crashed amid the ban on letting fees.
The fear from the ban on fees is that rents will increase and landlord fees will most definitely increase. Scotland already has this in place and do not charge any fees to tenants. Housing charity Shelter conducted detailed research and found the following; Scotland were no more likely to have increased rents after the ban came into force than landlords elsewhere in the UK.
Ban in Scotland
The Scottish letting agents group have disagreed to this. They argued that rents rose when this ban came in to place. A select committee from the House of Commons decide the evidence was inconclusive.
What will Happen in England and Wales?
Letting agents will see their profit margins hit significantly. This uncertainty in the UK rental market may see a decline in new landlords and withdrawal of current landlords. With all the new legislation, tax changes and now a ban on tenant fees, this most certainly affect the market in the future. Only time will tell what is in store for the rental market especially with Brexit and the new changes.
This news is a big shake up for the lettings industry, will we see agents disappearing?
All comments below are welcome, tell us what you think.
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