If This Does Go Ahead It'll Really Hurt Ea

[Blod]

http://www.bbc.co.uk/news/uk-politics-27323352

These fees are the only thing keeping many EAs afloat.

Only yesterday on "Under Offer: Estate Agents on the Job" one of the cast implied these fees provide their bread and butter.

Having priced most out of the market, so reducing transactions levels, this could be the last straw for many.

Fingers crossed for Tuesday.

Edited May 8, 2014 by Blod

[Corruption]

Surely theyll just put their commission rates up

[Killer Bunny]

ANY intervention is normally bad.

Let them charge what they like.

Stopping their fees will either do as prior says or agents will fall which means fewer firms > lower competition etc

TAKE AWAY the HTB intervention and property prices will fall, including rents

Edited May 8, 2014 by Killer Bunny

[The Knimbies who say No]

This single act could at a stroke turn lettings agents from churn merchants into stability seekers. No bad thing imo.

[ManVsRecession]

Surely theyll just put their commission rates up

That would be better than dumping the fees on the tenant. The landlord has a choice of letting agent, and can engage one that doesn't charge extra fees. The currently system is simply an excuse for EAs to screw someone in too weak a position to argue.

[Guest TheBlueCat]

This single act could at a stroke turn lettings agents from churn merchants into stability seekers. No bad thing imo.

Agreed, for that reason alone it's a good idea.

[ChumpusRex]

Surely theyll just put their commission rates up

That is going to be the likely result.

However, that will provide much more transparent pricing for both tenant and landlord. Both benefit, as the tenant gets a clear indication of inclusive price, and the LL gets a clear indication of how much the agent is skimming off.

[cica]

It'll make no difference. I've rented at least 10 places in recent years and none of the fees were more than £160. That was the max. Those will definitely be passed on elsewhere.

[Wurzel Of Highbridge]

The fee for this house was £275

[19 year mortgage 8itch]

Who pays for the credit check? Does this fall under the fees they would not be able to charge?

[renting til I die]

I've always dealt with the LL directly and have never paid any fees for moving. I didn't even pay a deposit in my current place!

I like the fact that Labour are starting to highlight unfair fees and the high cost generally involved in renting.

However as mentioned, these sort of interventions normally are counter productive and don't have the planned effect. We will see if it happens.

[cica]

Did banning charging maintenance fees directly to the tennant lower renting costs?

If this technique works, why don't we ask the landlords to pay the council tax?

I do concede it's possible there may be some aspect of this that could work but I doubt it would be remotely measurable and would be at the cost of doing something that really would work.

[cybernoid]

If it happens they'll be looking to make up for the shortfall with a higher turnover of property sales which ought to accelerate the move down when it comes.

I don't see that they can move anything else onto landlords, that has already been maximised and their yields are a joke as it is so theres no possibility of the landlords then passing that on to the tenant. But I expect thats the wisdom offered by the landlord boards at the moment.

[Democorruptcy]

Go long an increase in imputed rent's proportion of GDP.

[cica]

Assuming a £240 annual fee, the best it could ever work is lowering rents (total true rental cost) by £20/month. That's assuming a fee that high (must be one of the higher ones) and that it doesn't get passed on somewhere else (doubt it). Assuming to has _some_ effect it'll lower rents by about 1.5%

Edited May 8, 2014 by cica

[cybernoid]

I don't expect it to lower rents, why would that be? It will reduce the costs of renting for the tenant and make it easier to move, and reduce income to agents.

[cica]

I don't expect it to lower rents, why would that be? It will reduce the costs of renting for the tenant and make it easier to move, and reduce income to agents.

The only thing that matters is the true total rental cost to renters. Assuming the proportion of the profit margins agencies work to that are made up by the payment from the tenant is entirely irrelevant (free profit) then it's going to save renters about 2%.

There's no way that money is free money in the market.

Edited May 8, 2014 by cica

[dpg50000]

Hilarious - Milliband claiming to be standing up for "generation rent" when he, as an integral part of Liebour, presided over the biggest house price bubble in history.....

[Blod]

If this does get through, hopefully EAs will try to up the volume of sales transactions by trying to match valuations more to affordability.

[The Knimbies who say No]

I suppose the success of this amendment is tied to the Consumer Rights Bill it is contained within. If the bill is not controvesial in other respects Labour may have played a good hand by opening the possibility of having this on the statute book prior to the election. It seems it will have to clear the Lords at some point so it ought to be a good acid test on the appetite of the upper chamber to stomach this sort of proposal.

Doesn't sound like the sort of bill that would entice a full attendance, is it quite possible that it'll just pass with limited fuss at this stage?

[Blod]

I suppose the success of this amendment is tied to the Consumer Rights Bill it is contained within. If the bill is not controvesial in other respects Labour may have played a good hand by opening the possibility of having this on the statute book prior to the election. It seems it will have to clear the Lords at some point so it ought to be a good acid test on the appetite of the upper chamber to stomach this sort of proposal.

Doesn't sound like the sort of bill that would entice a full attendance, is it quite possible that it'll just pass with limited fuss at this stage?

+1

My opinion is that Dave won't want to be seen to act against those in the rental sector.

The EAs VIs have been caught out by the speed that this is advancing. Their usual mouthpieces seem to have been struck dumb.

[The Knimbies who say No]

+1

My opinion is that Dave won't want to be seen to act against those in the rental sector.

The EAs VIs have been caught out by the speed that this is advancing. Their usual mouthpieces seem to have been struck dumb.

Agreed, wonder if Labour's move is more opportunism than design(the amendment). It's the sort of manifesto commitment you could imagine falling by the wayside if the various VIs had time to organise the opponents.

I must admit to not being very informed on

timescales for legislation, but assuming this passes on Tuesday, when might it be expected to get its third reading and ultimately end up in the Lords? Does this have to be completed prior to the summer recess?

Edited May 9, 2014 by The Knimbies who say no

[TheCountOfNowhere]

I've noticed the politicians have started to try and appease the masses, is there an election next year ?

Generation rent will be generation UKIP soon.

"British politicians for British voters." Copyright 2014.

If UKIP want to use that on a poster....my fees are very reasonable.

Edited May 9, 2014 by TheCountOfNowhere

[Sancho Panza]

Assuming a £240 annual fee, the best it could ever work is lowering rents (total true rental cost) by £20/month. That's assuming a fee that high (must be one of the higher ones) and that it doesn't get passed on somewhere else (doubt it). Assuming to has _some_ effect it'll lower rents by about 1.5%

You clearly don't rent.

A friends son had a rental last year.After 6 months got 2 months notice.Moved.New house fees=£400 (not much choice in the market at the time),moving costs circa £400.Gets a 6 month AST where he might get 2 years there or he may get his S21 as soon as the fixed term is up.

On top of that he needed an extra £1600 for the new houses deposit and first month as the Agent-who happened to be running the house he was leaving couldn't roll the deposits.So,roughly speaking,cashflow needed for move=£2400.This was in the Midlands,not London.

The fees should be on the LL.Period.

Edit to add the average salary in that postcode is something like £19,000

Edited May 9, 2014 by Sancho Panza

[TheCountOfNowhere]

Im surprised no one has started a thread...."best ways to hurt an E.A."