The measure to ban letting agent fees was introduced during last year’s Autumn Statement and the main aim of the ban is to stop hidden charges and end tenants being hit by costly upfront payments that can be difficult to afford.
The government says the ban recognises that landlords are being hit with ‘dubious fees’ and that the measures will create a more transparent market so landlords can ‘easily shop around’ for an agent to provide the quality of service they want at a price they are willing to pay. It says that this will avoid double charging and result in a better service.
And while there have been significant concerns over the proposed ban, in particular from letting agents and the industry bodies, it is unlikely that the government will backtrack on its proposals now and there are some clear positives to it:
Greater transparency
The ban will add greater transparency to the market. It will stop hidden charges and end tenants being hit by costly upfront payments that can be difficult to afford. This in turn should make the process of renting a property a lot simpler for the tenant. Government proposes that the only charges that the tenant would have to pay will be upfront rental payment and a refundable security deposit.
Tenants will no longer be put off by the “high” agent fees
The ban will bring an end to the small minority of agents exploiting their role between renters and landlords, banish unfair charges being imposed and stop those agents that double charge tenants and property owners for the same service, clearly this is a good thing and should be welcomed by both tenants and landlords.
Drive up the competition
The government also hopes that the Tenant Fee Ban will drive up the competition amongst the agents and will reduce the fees charged overall.
Rents will go up
It can be argued that if the tenant will be paying less to the agent then they may be able to afford to pay higher rent, thus driving the rental amounts landlords receive up. The same would apply to tenancy renewals, absence of renewal administration fees may lead to higher renewal rental figures being agreed.
When will the ban come in?
As always, there is no knowing anything for sure until the exact details of the fee ban become apparent. The consultation period is expected to be lengthy but will allow all sides to put their points across; only then things will become a little bit more clearer.
Press Contact:
Miss. Claire White
W. Why Media
E. claire@whymedia.com
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