Posts Tagged ‘Phillip Hammond and the Lettings market’

Like many Letting Agents this morning I want to scream out in frustration at the unhelpful and sensational news articles that the likes of the BBC are streaming.

Letting Agents fees have not been banned. Yet.

Letting Agents fees to tenants will continue until legislation is passed. There will be a consultation before this happens. This will take time.

The whole thing has come about in the first place because of greedy agents charging a fortune.

Once again the  unscrupulous actions of the few is having a disproportionate affect on the reputations of many.

I know locally a letting agent (no names mentioned but sounds like an unpopular scavenging animal at the start) who charged over £750 in upfront tenant fees for the agent and for the life of me I cant see how that is fair!  Yet most of us agents charge simply 50% of the cost of the tenancy agreement, the cost of the references and a small administration fee. Most reputable agency charge between £200 – £300 plus VAT to cover this.

It will hurt responsible letting agents to loose this fee. Why? Because the cost of referencing is a genuine cost, as is our time in drawing up tenancy agreements. The costs of running a company mean that this cost will have to be placed onto the Landlord and most landlords will put up the rental.

Phillip Hammond has confirmed plans (and note these are plans, not legislation implemented from today!) to ban letting agents’ fees to tenants in England. The details of this important announcement are still very unclear but the Department for Communities and Local Government (DCLG) will consult with ARLA and other associations ahead of bringing forward legislation.

This industry does not need a BAN – it needs a regulatory cap. 

“So now is the time to speak out” 

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