Reverse A Proposed Ban On Letting Agents Charging Fees To Tenants

Firstly, something must be done to help tenants with some agents charging ludicrous fees to tenants! I would propose a fee cap. Agents cant charge any higher than a set agreed price. It is vital to sustain affordability for all tenants, landlords and agents. Please read on to help understand...

I opened a letting agents when I was 21, 8 years ago, its all I have done and know. We pride ourselves on offering fair fees to tenants and landlords. Tenant fees are a must to survive as a business, we will have to pass on our lost fees to landlords, speaking to our landlords they plan to raise their rents to cover their fees immediately.

This action makes no sense at all, we can keep everyone happy, set a reasonable cap so tenants, agents and landlords can continue to survive comfortably.

The Government recognises the valuable service that good letting agents provide to both landlords and tenants in ensuring that properties are safe, compliant and professionally managed. We are keen to see all tenants receiving a good and affordable service. A ban on letting fees paid by tenants will improve transparency and affordability for renters - letting fees are currently not clearly or consistently explained with the result that many tenants are unaware of the true costs of renting a property.

The Government published the draft Tenant Fees Bill on 1 November (https://www.gov.uk/government/publications/draft-tenants-fees-bill), which sets out the detailed approach to banning letting fees to tenants in England, helping millions of renters by bringing an end to costly upfront payments and renewal fees.

The draft Tenant Fees Bill reflects feedback from the eight week public consultation (April – June 2017), which received over 4,700 responses. More than 9 out of 10 tenants who responded to the consultation backed the action to ban letting fees. We are ensuring that tenants will only be required to pay rent alongside a refundable deposit.

Many letting agents and landlords acknowledge that fees charged to tenants are currently not at a level that is justifiable and agree that intervention is necessary. The Government does not believe that a cap would be effective and is likely to lead to a race to the top in terms of fees charged. A ban is easier to understand and enforce.

We believe that tenants will see a net saving as a result of the ban. Tenants will be able to see what a given property will cost them in the advertised rent level without any additional hidden costs. This will help to make entering and moving around in the private rented sector easier and less costly.