spyguy Posted May 31, 2019 Share Posted May 31, 2019 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. Quote Link to comment Share on other sites More sharing options...
thewig Posted May 31, 2019 Share Posted May 31, 2019 Rents will have to just get banged up off the back of this. Quote Link to comment Share on other sites More sharing options...
BorrowToLeech Posted May 31, 2019 Share Posted May 31, 2019 Quote Link to comment Share on other sites More sharing options...
ftb_fml Posted May 31, 2019 Share Posted May 31, 2019 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 Quote Link to comment Share on other sites More sharing options...
hurlerontheditch Posted May 31, 2019 Share Posted May 31, 2019 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." Quote Link to comment Share on other sites More sharing options...
longgone Posted May 31, 2019 Share Posted May 31, 2019 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. Quote Link to comment Share on other sites More sharing options...
Trump Invective Posted May 31, 2019 Share Posted May 31, 2019 "And therefore, while this sounds great it's probably not going to be." I love a bit of scientific analysis. When the term "probably" is used I always take that as gospel. Quote Link to comment Share on other sites More sharing options...
Wayward Posted May 31, 2019 Share Posted May 31, 2019 Some landlords will be able to increase the rent to reflect this...depends on the supply and demand dynamics in that local market. Quote Link to comment Share on other sites More sharing options...
Si1 Posted May 31, 2019 Share Posted May 31, 2019 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 EXECUTIVEDavid 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. Quote Link to comment Share on other sites More sharing options...
Pebbles Posted May 31, 2019 Share Posted May 31, 2019 Good hopefully the landlords choose the letting agency not the tenants so they should bear the cost. Quote Link to comment Share on other sites More sharing options...
spacedin Posted May 31, 2019 Share Posted May 31, 2019 (edited) 21 minutes ago, Si1 said: " Nevermind Edited May 31, 2019 by spacedin Quote Link to comment Share on other sites More sharing options...
spyguy Posted May 31, 2019 Author Share Posted May 31, 2019 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? Quote Link to comment Share on other sites More sharing options...
TopBanana101 Posted May 31, 2019 Share Posted May 31, 2019 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. Quote Link to comment Share on other sites More sharing options...
moesasji Posted May 31, 2019 Share Posted May 31, 2019 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. Quote Link to comment Share on other sites More sharing options...
Ah-so Posted June 1, 2019 Share Posted June 1, 2019 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. Quote Link to comment Share on other sites More sharing options...
MonsieurCopperCrutch Posted June 1, 2019 Share Posted June 1, 2019 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. Quote Link to comment Share on other sites More sharing options...
winkie Posted June 1, 2019 Share Posted June 1, 2019 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....... Quote Link to comment Share on other sites More sharing options...
Habeas Domus Posted June 1, 2019 Share Posted June 1, 2019 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. Quote Link to comment Share on other sites More sharing options...
TopBanana101 Posted June 1, 2019 Share Posted June 1, 2019 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? Quote Link to comment Share on other sites More sharing options...
Dorkins Posted June 2, 2019 Share Posted June 2, 2019 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? Quote Link to comment Share on other sites More sharing options...
moesasji Posted June 2, 2019 Share Posted June 2, 2019 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. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted June 2, 2019 Share Posted June 2, 2019 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. Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 2, 2019 Author Share Posted June 2, 2019 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. Quote Link to comment Share on other sites More sharing options...
Habeas Domus Posted June 2, 2019 Share Posted June 2, 2019 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. Quote Link to comment Share on other sites More sharing options...
TopBanana101 Posted June 3, 2019 Share Posted June 3, 2019 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. Quote Link to comment Share on other sites More sharing options...
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