12th
Jul 2017
The widely perceived view across the PRS is that the banning of tenant's fees is an extremely 'onerous' government measure that could have far reaching implications on the rental market.
Everybody expects that landlords will have to compensate their lettings agent's losses, or face reduced levels of service and to protect themselves landlords will be forced to increase rents.
It is an undeniable fact that some agents have been' found out' for charging exorbitant fees to prospective tenants and in some circles the ban has been welcomed.
Alex Harrington, group letting managing director of an estate agent, is in favour of the ban and claims the company is more than happy with it coming into force.
Harrington said: “We have always kept any charges to tenants as low as possible, making sure any financial contribution from a tenant has been transparent before they consider renting through us and that it is wholly relevant to the work carried out on their behalf.”
Charlie Woods, senior lettings director of another agent, is fully supportive of the impending government ban. Wood said: “From our point of view it’s business as usual, for quite a while now we haven’t charged the standard administration fee, because we simply don’t see the need. We also don’t charge the landlord their portion as they are paying us a fee already so we’ve always felt it was unjustified to ask for anything else on top.
“There has been talk of some agents pushing the fees onto the landlord, who could subsequently increase the rent to cover the additional costs. However, I feel this is unlikely, as with the sales market, overly high prices in the rental market stand out and the properties will simply not let, so all-in-all this will be a very positive move for tenants.”
Lizzie Stevens, director of the rental arm of one of London's largest housing associations, said the ban could not come fast enough.
Stevens said: “...... we stopped this practice several years ago; there is no need for tenants to be struck with a hefty upfront payment when moving home is an expensive time as it is.
“Corporate landlords like ourselves are ahead of the game and this will not affect our business – but it will shake up the private landlord sector and give a better name all rounds to the word landlord.”
Calum Brannan, CEO of an online property management and tenant finder service, regards the Tenant’s Fees Bill as a “huge leap forward for the letting market – an industry that has been double dipping and making profits from both tenants and landlords simultaneously for too long”.
Agents will have already started making plans to their model to ensure that the ban will not impact too strongly upon their business.
News Archive »