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spyguy

Happy New Rent Laws day!

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On radio. Not on BBC website.

Removal of fees starts today.

Some weaselly words - 'LL will put rents up' comment from ARLA.

Nope.

90% of rents are determined by LHA.

Ill have to have words with the next letting agent I see - 'No, Im not giving you 10p for a 'cup of tea''

Went to the ARLA site, see if they had an article:

https://www.arla.co.uk/news/may-2019/focus-drive-and-market-share/

Some nuts coahcign thing - Focus, Drive, MArket Share.

Oh dear.

 

 

 

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Good news but rings hollow for me personally since, as existing tenants we're not eligible and have just paid another £100 for 10 minutes of £18k Gary-excess-hairgel's time to change some dates and print off a few pro-formas. That on top of a £50pcm rise because "rents are rising"; which IMO is questionable but having been refused a rent freeze I don't have the balls to haggle further for risk of having my bluff called :(

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2 hours ago, spyguy said:

On radio. Not on BBC website.

Removal of fees starts today.

Some weaselly words - 'LL will put rents up' comment from ARLA.

Nope.

90% of rents are determined by LHA.

Ill have to have words with the next letting agent I see - 'No, Im not giving you 10p for a 'cup of tea''

Went to the ARLA site, see if they had an article:

https://www.arla.co.uk/news/may-2019/focus-drive-and-market-share/

Some nuts coahcign thing - Focus, Drive, MArket Share.

Oh dear.

 

 

 

ye on bbc5:

The tenant fee ban comes into force in England on Saturday which means people renting a property cannot be charged for things like admin costs, credit checks and references.

But the letting agents association, ARLA, says rents are already rising to cover these costs.

ARLA chief executive David Cox tells Wake Up to Money: "These are legitimate costs. They're legitimate work that agents have to do in order to prepare tenancies and keep tenancies well managed throughout the term.

"And therefore, while this sounds great it's probably not going to be."

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13 minutes ago, hurlerontheditch said:

ye on bbc5:

The tenant fee ban comes into force in England on Saturday which means people renting a property cannot be charged for things like admin costs, credit checks and references.

But the letting agents association, ARLA, says rents are already rising to cover these costs.

ARLA chief executive David Cox tells Wake Up to Money: "These are legitimate costs. They're legitimate work that agents have to do in order to prepare tenancies and keep tenancies well managed throughout the term.

"And therefore, while this sounds great it's probably not going to be."

Apart from the fact rent is negotiable whereas fees are not. 

Just knock it off on a new tenancy. Or no deal.

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Some landlords will be able to increase the rent to reflect this...depends on the supply and demand dynamics in that local market.

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3 hours ago, hurlerontheditch said:

ye on bbc5:

The tenant fee ban comes into force in England on Saturday which means people renting a property cannot be charged for things like admin costs, credit checks and references.

But the letting agents association, ARLA, says rents are already rising to cover these costs.

ARLA chief executive David Cox tells Wake Up to Money: "These are legitimate costs. They're legitimate work that agents have to do in order to prepare tenancies and keep tenancies well managed throughout the term.

"And therefore, while this sounds great it's probably not going to be."

"DAVID COX, CHIEF EXECUTIVE
David Cox became ARLA Propertymark Chief Executive in June 2014. He has a strong policy and stakeholder engagement background, having held previous senior policy roles at the National Landlords Association (NLA) and the International Union of Property Owners (UIPI)."

nice unbiased background there.

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7 hours ago, hurlerontheditch said:

ye on bbc5:

The tenant fee ban comes into force in England on Saturday which means people renting a property cannot be charged for things like admin costs, credit checks and references.

But the letting agents association, ARLA, says rents are already rising to cover these costs.

ARLA chief executive David Cox tells Wake Up to Money: "These are legitimate costs. They're legitimate work that agents have to do in order to prepare tenancies and keep tenancies well managed throughout the term.

"And therefore, while this sounds great it's probably not going to be."

For whom?

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5 hours ago, spyguy said:

For whom?

For too many years I paid agents thousands to treat me like sh*t. When I'd ever dare to complain, they reply they were employed by the landlord therefore worked in his interest not mine.  But here's me, the ultimate customer paying the bill!

I'm going to enjoy watching them burn is the harsh truth.

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14 hours ago, ftb_fml said:

Good news but rings hollow for me personally since, as existing tenants we're not eligible and have just paid another £100 for 10 minutes of £18k Gary-excess-hairgel's time to change some dates and print off a few pro-formas. That on top of a £50pcm rise because "rents are rising"; which IMO is questionable but having been refused a rent freeze I don't have the balls to haggle further for risk of having my bluff called :(

This is only the case if (i) these renewal fees are written into your existing contract and (ii) if the renewal happens before 31st of May 2020. Not that there will be a deadline in June 2020 when stupid things like "checkout" charges will also disappear for those currently having a contract. See: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/791273/TFA_Guidance_for_LandlordsAgents.pdf

btw) I've always ignored the pressure to get me to sign a new contract; never had a landlord who was willing to follow through on empty scare-mongering from letting agencies. However you might have been in a different situation with an S21 in play.

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16 hours ago, TopBanana101 said:

For too many years I paid agents thousands to treat me like sh*t. When I'd ever dare to complain, they reply they were employed by the landlord therefore worked in his interest not mine.  But here's me, the ultimate customer paying the bill!

I'm going to enjoy watching them burn is the harsh truth.

You pay both bills ultimately, it's just that one is direct from you and the other indirect. 

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17 hours ago, TopBanana101 said:

For too many years I paid agents thousands to treat me like sh*t. When I'd ever dare to complain, they reply they were employed by the landlord therefore worked in his interest not mine.  But here's me, the ultimate customer paying the bill!

I'm going to enjoy watching them burn is the harsh truth.

You’ll still be paying it going forward. It’ll just be hidden and indirect. No one will be burning. 

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On 31/05/2019 at 07:32, thewig said:

Rents will have to just get banged up off the back of this. 

No, if landlords don't like the fees being banged up they will have to cut out the agents..... estate agents will have to start selling houses again at the right price.......;)

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There is one possible downside to this change, if we start to see house price falls as are already happening in London, then some landlords will be looking to sell off their portfolio - marketing them while a tenant is still in situ and then kicking them out when a sale is agreed.

for some people paying a couple of hundred quid to secure a place for a fixed 12 months will be worth it to avoid the possibility of being forced to move house in January.

Landlords/Agents now have zero incentive to offer a fixed tenancy.

 

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40 minutes ago, Habeas Domus said:

There is one possible downside to this change, if we start to see house price falls as are already happening in London, then some landlords will be looking to sell off their portfolio - marketing them while a tenant is still in situ and then kicking them out when a sale is agreed.

for some people paying a couple of hundred quid to secure a place for a fixed 12 months will be worth it to avoid the possibility of being forced to move house in January.

Landlords/Agents now have zero incentive to offer a fixed tenancy.

 

Who will they sell to?

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12 hours ago, Habeas Domus said:

There is one possible downside to this change, if we start to see house price falls as are already happening in London, then some landlords will be looking to sell off their portfolio - marketing them while a tenant is still in situ and then kicking them out when a sale is agreed.

for some people paying a couple of hundred quid to secure a place for a fixed 12 months will be worth it to avoid the possibility of being forced to move house in January.

Landlords/Agents now have zero incentive to offer a fixed tenancy.

 

By law an AST has to have a fixed period of at least 6 months.

Your post seems quite confused - is it the abolition of fees for tenants which disincentivises longer fixed periods or falling house prices?

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12 hours ago, Habeas Domus said:

Landlords/Agents now have zero incentive to offer a fixed tenancy.

 

This sounds too simplistic too me for several reasons as long tenancies help avoid expensive voids and uncertainty. There are also plenty of landlords that manage the property themselves and only use agencies to find tenants. Those landlords will want to avoid having to fork out fees every six months exactly the same reason 12 month tenancies are attractive to tenants at the moment. But most important of all is that landlords can negotiate these fees, while tenants couldn't. I've paid up to 800 pound for these stupid fees....and that was for to rent a place from an agency we rented through already and I pretty sure they also fleeced the landlord. 

btw) the current government was also looking into making longer tenancies the default, so there might be a more coherent strategy that underpins this.

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2 hours ago, moesasji said:

btw) the current government was also looking into making longer tenancies the default, so there might be a more coherent strategy that underpins this.

Yes, private renting in England is very slowly getting better.

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16 hours ago, Habeas Domus said:

There is one possible downside to this change, if we start to see house price falls as are already happening in London, then some landlords will be looking to sell off their portfolio - marketing them while a tenant is still in situ and then kicking them out when a sale is agreed.

for some people paying a couple of hundred quid to secure a place for a fixed 12 months will be worth it to avoid the possibility of being forced to move house in January.

Landlords/Agents now have zero incentive to offer a fixed tenancy.

 

agents do not offer anything.

LL have to offer a contract as their mortgage provider insists on it.

As far as rent going  up etc etc. The whole LL /agents thing is nothing more than dumb job (well, fee) creation a the expense of the tenant.

 

 

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4 hours ago, Dorkins said:

By law an AST has to have a fixed period of at least 6 months.

Your post seems quite confused - is it the abolition of fees for tenants which disincentivises longer fixed periods or falling house prices?

Im talking about after the initial period has expired, I expect a lot of landlords will encourage all tenants to just move onto a rolling tenancy so they can minimise the paperwork and costs of writing a new agreement every year. This is assuming that agents pass on the renewal fees to landlords instead of just eating them.

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On 01/06/2019 at 16:55, MonsieurCopperCrutch said:

You’ll still be paying it going forward. It’ll just be hidden and indirect. No one will be burning. 

That's not how markets work; the letting agents will be squeezed. 50% of landlords don't use letting agents, I suspect that number will increase.  Asking price for rents may rise in the short-term, but in the long-term, there is less cost for the tenant to shop around.  Affordability sets rents, not landlords costs & there is now nothing stopping tenants playing one landlord off another. This is not the time in the economic cycle to be leveraged with debt.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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