Property Hawk the landlord's homepage since 2006
Free Tenancy Agreement FREE tenancy agreement
Free Landlord Software FREE landlord software
Home | Property Manager | Free ASTs | Landlord Forms | Mortgages | Insurance | Inventory | Magazine | Landlords Bible | Directory | Forum | Training | News / Blog |

Wednesday, November 23, 2016

Ban on letting agency fees - landlords to pay

Philip Hammond has confirmed he will be banning letting agency fees for tenants.

Expect one thing to happen as a result of this -  letting agency fees for landlords to rise.

Agents will look to recoup income by either increasing charges to landlords for letting a property or by increasing management fees, or a bit of both.

The Government clearly feels the need to continue its re-balancing of the tenant / landlord wealth divide in the economy.

One positive we might take, is the economy's reliance that residential property prices are maintained / propped up in the medium to long term.

The house of cards appears to be getting its base stuck down with a glue gun.

Landlords can of course avoid Letting Agent Fees altogether by DIY.

More comment on the ban on letting agency fees for tenants -

Take advantage of our discounted landlord insurance rates


Dewi34 said...

This is bad news all round.
If a prospective tenant fails a reference check he or she will presumably shop around to find some mug who doesn't do one, at no cost to themselves.
Likewise even after passing the check they can just walk away, leaving the agent/landlord out of pocket.

Anonymous said...

As a landlord and previously a tenant,I feel this is fair,agents have been ripping off vulnerable tenants for ages,If this causes a problem then the agent should bill the landlord for their fee,but you watch landlords will then complain,I feel as landlords we have to be fair,tenants are already paying sky high rents.

Anonymous said...

As a landlord I've yet to assess the impact of the Chancellor's decision. Obviously he feels there is a problem here that needs addressing. No one sould pay £200 for a £16 reference check if that is true. However if I am to let a property I need to establish that the tenant can pay the rent and I don't think it is incumbant on the landlord to demonstrate this.

Unknown said...

All that's going to happen is rent costs will rise.

Anonymous said...

Letting agents will pass the cost on to landlords, who in turn will pass the cost on to tenants. So tenants will end up paying anyway. However, this will remove any doubt about who the letting agent is working for.

I've had letting agents who seem more interested in knocking the rent down than finding decent tenants who will pay the going rate. This move will make it unambiguously clear - letting agents are the landlord's bitch.

This isn't really in the interests of tenants, but of course the Tories will spin it as them being on the side of the poor, and the press will just love it because everyone likes having a go at landlords.

The Tories' true agenda is to get small landlords out of the picture so that the entire PRS is held by big corporate landlords.