Lettings agent fees will be banned

[Michael Browne]

Lettings agents in England will be banned from charging fees to tenants "as soon as possible" under plans announced in the Autumn Statement.

 

Tenants can be charged fees for a range of administration, including reference, credit and immigration checks.

 

Chancellor Philip Hammond said shifting the cost to landlords will save 4.3 million households hundreds of pounds.

 

The move could spur competition as landlords, unlike tenants, can shop around for the cheapest agent.

 

In Scotland, lettings agency fees to tenants have already been banned.

 

In England and Wales since last year, lettings and managing agents have been legally obliged to clearly publicise their fees.

 

Fees vary widely, with costs in some big cities much higher than elsewhere.

 

Tenants face charges when agents draw up tenancy agreements along with the possibility of a non-refundable holding deposit paid before signing up to the deal.

http://www.bbc.co.uk/news/business-38065249

[ericsbrother]

what will all the useless amatuer landlords do now? you cant expect them to read up on the law just because it is their business to know their business. That is why they employ these bandits in the first place

[WarrenBuffet]

Well said Erics bro.

[Steve__M]

what will all the useless amatuer landlords do now? you cant expect them to read up on the law just because it is their business to know their business. That is why they employ these bandits in the first place

 

It would not surprise me if some landlords don't even know what the agent is charging the landlord. In my limited experience the agents do not go out of their way to say.

[ericsbrother]

I do the accounts of a friend who runs a small business and owna rented out flat. She leaves everything to the agent and gets ripped off something rotten with the agents agreeing to replace kitchens and bathrooms becasue tenant doesnt like it (high end property in London) and just bills her for it. I keep telling her to manage it herself as it takes no time at all and her other half is a professional decorator so knows people in the building trade but she is too lazy to even contemplate it. Same goes with the small business, she wont even write a letter to the VAT man to save herself a fortune and the reason why I do her books is because her previous professional accountant ripped her off and was useless to boot. He live in Wales and used to charge her for travel, she appointed him when he lived about 2 doors away and couldnt be bothered to find a local replacement when he retired.

This is why these agents stay in business and if changes to the housing market put all of these amateurs out of business I would not cry. there would be more property hitting the market which would drop the prices and those bought up by professional rental outfits would mean tenants will ultimately get a more responsive landlord and no lazy lying middle men to go through. I know you will never get rid of all the bad uns, same as many good ones will suffer but it will even things out