31st
Mar 2017
MP Julie Elliot has received a written reply to her letter from the Housing Minister Gavin Barwell, stating that the government “will consult in the spring on the detail of implementation for the introduction of the ban of letting agents charging tenant fees.
The correspondence also contained the statement that the government is “committed to building a strong and safe private rented sector, which provides security and stability for both tenants and landlords."
The Labour MP for Sunderland Central had asked the Minister: “To ask the Secretary of State for Communities and Local Government, what steps his Department is taking to monitor (a) letting agent fees, (b) lease terms and (c) safety standards in rented properties.”
Barwell has a 'wealth' of responsibilities as he is Comptroller (HM Household) (Deputy Chief Whip, House of Commons), Minister of State (Department for Communities and Local Government) (Housing, Planning and London).
His reply to Julie Elliot stated:
“We announced at the 2016 Autumn Statement a ban on letting agent fees paid by tenants, to improve competition in the private rental market and give renters greater clarity and control over what they will pay.
“The Government will consult in the Spring on the detail of implementation.
“The Housing White Paper outlines the Government’s intention to promote fairness and transparency for the growing number of leaseholders.
“We will consult on a range of measures to tackle all unfair and unreasonable abuses of leasehold and consider further reforms through the consultation to improve consumer choice and fairness for leaseholders.
“An increasing number of private tenants are happy with their tenure and standards are improving. We are determined to ensure all sectors of the housing market provide decent homes.”
Until the government's consultation process ends with the introduction of the new legislation, letting agents are free to charge what they like to tenants in 'arrangement' fees, which the government has pledged to stop. It is not known the full effects this will have on landlords, who may have to compensate for this by paying more fees themselves and of course the tenants if rents are increased to cover the shortfall.
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