Bankside Posted June 21, 2017 Share Posted June 21, 2017 Queen's Speech 2017: Lettings fees to be banned - finally More than six months after first suggesting the idea, the government has finally announced plans to ban fees to lettings agents in England. A new Tenants' Fees Bill was announced in the Queen's Speech, which will stop tenants having to pay money to agents. The idea was first suggested by the Conservatives in the 2016 Autumn Statement. The measure is likely to pass into law, as all the main parties had it in their election manifestos. http://www.bbc.co.uk/news/business-40354019 Quote Link to comment Share on other sites More sharing options...
Wayward Posted June 21, 2017 Share Posted June 21, 2017 I wrote to my Tory MP about this (I think following a Priced Out campaign) - she replied saying she didn't support it and claimed it would increase rents. I will write to her again and ask her about her BTL portfolio and whether she is still opposes this policy, whether this is due to her having a vested interest and if so whether she intends to resign. A disgrace...if you think they represent your interests you're a fool. Quote Link to comment Share on other sites More sharing options...
ftb_fml Posted June 21, 2017 Share Posted June 21, 2017 Excellent news! Just as I toddle off today to spunk four hundred pounds on nebulous "fees" on a new tenancy.. and that was haggled down from £640 -robbing bstards! While agents will no doubt now turn their profiteering towards rents, hopefully this signals another small hole in the hull of the good ship BTL.. Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 21, 2017 Share Posted June 21, 2017 Well, thats about 70% of he local EAs cash income gone. Ha ha ha ha stnuc. Quote Link to comment Share on other sites More sharing options...
Monkey Posted June 21, 2017 Share Posted June 21, 2017 Just had a look on property118, strangely not being discussed yet..... Quote Link to comment Share on other sites More sharing options...
Bankside Posted June 21, 2017 Author Share Posted June 21, 2017 NEWSFLASH: Lettings fee ban will let tenants recover unlawful charges http://stopthepress.propertyindustryeye.com/newsflash-lettings-fee-ban-will-let-tenants-recover-unlawful-charges/ Quote Link to comment Share on other sites More sharing options...
Bankside Posted June 21, 2017 Author Share Posted June 21, 2017 (edited) And as an added bonus But in a surprise move, the government also revealed that it is to cap deposits at one week’s rent, rather than the six weeks’ rent that is most common within the sector at the moment. https://thenegotiator.co.uk/letting-fees-ban-queens-speech/ Edited June 21, 2017 by Bankside Quote Link to comment Share on other sites More sharing options...
wsn03 Posted June 21, 2017 Share Posted June 21, 2017 (edited) “A ban on letting agent fees will cost the sector jobs, make buy-to-let investment even less attractive, and ultimately result in the costs being passed on to tenants.” Haven't laughed so much in ages. Which is funnier, the truth in the first two points, or the lie in the last one? Edited June 21, 2017 by wsn03 Quote Link to comment Share on other sites More sharing options...
wsn03 Posted June 21, 2017 Share Posted June 21, 2017 (edited) It gets funnier though: David also believes that, given the amount of work letting agents put into preparing tenancies and managing properties, it is “only right and proportionate that the industry is recompensed for this work, which benefits tenants”, he says. 4,000 jobs Research by ARLA also reveals how hight the stakes are for letting agents. It says that the fees ban is likely to see the industry lose £200m in turnover and 4,000 jobs, while landlords are likely to lose £300 million in lost revenue. “On average, rent costs will go up by £103 per tenant, per year, ultimately meaning tenants who move more frequently will reap savings on their overall costs but longer-term tenants, who are usually lower income families, will see a loss as their rents rise year-on-year,” says David. Edited June 21, 2017 by wsn03 typo Quote Link to comment Share on other sites More sharing options...
Panda Posted June 21, 2017 Share Posted June 21, 2017 Draft Tenants’ Fees Bill: to ban landlords and agents charging ‘letting fees’ or any payments as a condition of tenancy other than rent, a capped refundable security deposit at no more than one month’s rent, a capped refundable holding deposit at no more than one week’s rent and tenant default fees. Quote Link to comment Share on other sites More sharing options...
Freki Posted June 21, 2017 Share Posted June 21, 2017 I wonder why those professionals are so concerned about tenants when there has been a precedent with Scotland. They never bring this example to display their points. Also rents have started to drop despite the "tenant tax", against all of their believes... The finger they started getting is forming into a fist it seems. Quote Link to comment Share on other sites More sharing options...
Bear Hug Posted June 21, 2017 Share Posted June 21, 2017 4 hours ago, Bankside said: And as an added bonus But in a surprise move, the government also revealed that it is to cap deposits at one week’s rent, rather than the six weeks’ rent that is most common within the sector at the moment. https://thenegotiator.co.uk/letting-fees-ban-queens-speech/ 3 hours ago, fru-gal said: I wonder if they will let people claim back the other 5 weeks of rent retrospectively ? Looking at FT article: "One-month tenancy deposit cap proposed in Queen’s Speech", gives 1 week holding deposit and 1 month security deposit. Can't wait, as I am considering moving again Quote Link to comment Share on other sites More sharing options...
MattW Posted June 21, 2017 Share Posted June 21, 2017 Whoop Whoop! Quote Link to comment Share on other sites More sharing options...
monkeyprojects Posted June 21, 2017 Share Posted June 21, 2017 4 hours ago, wsn03 said: It gets funnier though: David also believes that, given the amount of work letting agents put into preparing tenancies and managing properties, it is “only right and proportionate that the industry is recompensed for this work, which benefits tenants”, he says. 4,000 jobs Research by ARLA also reveals how hight the stakes are for letting agents. It says that the fees ban is likely to see the industry lose £200m in turnover and 4,000 jobs, while landlords are likely to lose £300 million in lost revenue. “On average, rent costs will go up by £103 per tenant, per year, ultimately meaning tenants who move more frequently will reap savings on their overall costs but longer-term tenants, who are usually lower income families, will see a loss as their rents rise year-on-year,” says David. On average rents will go up less than £2 a week while removing the barriers that require people to spend up to £700 before setting foot in the property... Also lower income families are usually only in properties long term as they cannot afford to find another overpriced deposit while the previous one is being held captive by previous landlord. Now that restriction is removed a lot of families will be trying to escape the poorer quality properties they are trapped in - so even that argument doesn't hold up to any scrutiny.... Quote Link to comment Share on other sites More sharing options...
a j Posted June 21, 2017 Share Posted June 21, 2017 9 minutes ago, monkeyprojects said: On average rents will go up less than £2 a week while removing the barriers that require people to spend up to £700 before setting foot in the property... Also lower income families are usually only in properties long term as they cannot afford to find another overpriced deposit while the previous one is being held captive by previous landlord. Now that restriction is removed a lot of families will be trying to escape the poorer quality properties they are trapped in - so even that argument doesn't hold up to any scrutiny.... Thats important - the fear of a huge cash outflow keeps people subservient. hopefully bad landlords will face a tough time. Quote Link to comment Share on other sites More sharing options...
hi5lo5 Posted June 21, 2017 Share Posted June 21, 2017 29 minutes ago, monkeyprojects said: On average rents will go up less than £2 a week while removing the barriers that require people to spend up to £700 before setting foot in the property... Also lower income families are usually only in properties long term as they cannot afford to find another overpriced deposit while the previous one is being held captive by previous landlord. Now that restriction is removed a lot of families will be trying to escape the poorer quality properties they are trapped in - so even that argument doesn't hold up to any scrutiny.... Removal of 10% wear and tear allowance made a dent in the yields. Now rents falling and letting agent fee ban puts the tenant in control of the rent. The rest of the rent is subject to S24. Bring it on... Quote Link to comment Share on other sites More sharing options...
bobbo Posted June 22, 2017 Share Posted June 22, 2017 I guess the consultation yielded some decent tenant responses! Hope it comes through by end of year as I expect that I will need to move at the end of the year as landlord is likely to increase rent again due to S24. Bit concerned that it is a draft bill. What does that mean? Quote Link to comment Share on other sites More sharing options...
giggler000 Posted June 22, 2017 Share Posted June 22, 2017 Very please to hear, f*** y*** Leaders......... Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted June 22, 2017 Share Posted June 22, 2017 22 hours ago, spyguy said: Well, thats about 70% of he local EAs cash income gone. Ha ha ha ha stnuc. I think they'll try to pass on the costs through to landlords who will split between themselves and the tenants. Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 22, 2017 Share Posted June 22, 2017 6 minutes ago, Ash4781 said: I think they'll try to pass on the costs through to landlords who will split between themselves and the tenants. Iev not a problem wit hthat. Putting the costs on the rental will make the cost transparent. However, going b ythe number of rental voids Im seeing I would guess theres not a lot of scope. Quote Link to comment Share on other sites More sharing options...
Diver Dan Posted June 22, 2017 Share Posted June 22, 2017 33 minutes ago, Ash4781 said: I think they'll try to pass on the costs through to landlords who will split between themselves and the tenants. Basically it will spread the tenant's contribution towards any costs for administration, advertising etc. across the entire length of the tenancy rather than having them in one large lump up-front. Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 22, 2017 Share Posted June 22, 2017 4 minutes ago, Diver Dan said: Basically it will spread the tenant's contribution towards any costs for administration, advertising etc. across the entire length of the tenancy rather than having them in one large lump up-front. Well .. that assumes rents are flexible. They are not. Most private rents are set/influenced by LHA. It also assumes that charges are necessary or exist for some service provided. They are not. Its a figure that EA just pull out of their ar5es with no justification or work involved. Quote Link to comment Share on other sites More sharing options...
Diver Dan Posted June 22, 2017 Share Posted June 22, 2017 (edited) 42 minutes ago, spyguy said: Well .. that assumes rents are flexible. They are not. Most private rents are set/influenced by LHA. It also assumes that charges are necessary or exist for some service provided. They are not. Its a figure that EA just pull out of their ar5es with no justification or work involved. You're probably right. Landlords do get letting agents to advertise, manage etc. their rentals for them so there probably are some costs incurred. Mostly these costs have been vastly overstated to the detriment of the tenant and will now have to be shared to a greater or lesser extent between the landlord and tenant from the monthly rent paid. The landlord is free to attempt to raise his rent to cover as much of the cost as he can get. Whether this will work remains to be seen. Edited June 22, 2017 by Diver Dan Quote Link to comment Share on other sites More sharing options...
mattyboy1973 Posted June 22, 2017 Share Posted June 22, 2017 (edited) 23 hours ago, Bankside said: And as an added bonus But in a surprise move, the government also revealed that it is to cap deposits at one week’s rent, rather than the six weeks’ rent that is most common within the sector at the moment. https://thenegotiator.co.uk/letting-fees-ban-queens-speech/ Wow - that is quite a change as well. By way of illustration, we forked out £2500 up-front to move into our current place, of which £2100 was 6x week deposit. Obviously for many that could make moving tough, since you don't get it back before you need to provide the next deposit. Under the new regs, our up-front costs would be £350.. going to make it much tougher IMO for landlords to try and put you over a barrel for rent increases. Edit: so is it a week or a month deposit? I think it is a month, and that is a typo in the linked article.. which does seem more plausible. Edited June 22, 2017 by mattyboy1973 Quote Link to comment Share on other sites More sharing options...
Amiinsane Posted June 22, 2017 Share Posted June 22, 2017 13 minutes ago, Diver Dan said: You're probably right. Landlords do get letting agents to advertise, manage etc. their rentals for them so there probably are some costs incurred. Mostly these costs have been vastly overstated to the detriment of the tenant and will now have to be shared to a greater or lesser extent between the landlord and tenant from the monthly rent paid. The landlord is free to attempt to raise his rent to cover as much of the cost as he can get. Whether this will work remains to be seen. Except there's already a precedent for this in Scotland. And rents didn't increase as a result. Quote Link to comment Share on other sites More sharing options...
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