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Letting fees ban

Letting Fees Ban – To be or not to be?

Letting Fees Ban – To be or not to be?   At the forefront of the Chancellor’s statement was an effective ban on letting agent fees. Phillip Hammond said: “in the private rental market, letting agents are currently able to charge unregulated fees to tenants. We have seen these fees spiral, often to hundreds of pounds. This is wrong. Landlords appoint letting agents and landlords should meet their fees. So I can announce today that we will ban fees to tenants as soon as possible.”

Many reputable agents would disagree with this statement but it is hard to argue that there isn’t a problem with a system where tenants are regularly charged up to £650 per application.  On researching, the fees charged in Manchester city centre, range from as little as £50 to as much as £694.”

However, despite some welcoming the move, others claim that simply removing the cost will end up hurting tenants the most. As estate agents look to move the cost onto landlords, some 40% of landlords will look to increase rents in order to recoup the subsequent loss on their part if the fees are passed from tenant to landlord by their agent.

As expected, since the announcement there has been widespread indignation among certain corners of the industry, with the Association of Residential Letting Agents (ARLA) calling for the ban reversed.

The latest information is that the letting fees ban would most likely come into force in 2018 – to be or not to be?

We would love to hear your thoughts on this.   Go to our Contacts Page to note down your views.  We will pass them on to NALS who have a working group on behalf of landlords, agents and tenants.  It is important to get your views known too.

 

As a reputable letting agent, we at Stuarts have not increased our Tenancy application fee since 2013.  It remains at £135 +vat with no plans to increase it. This compares to some local agents charging £250+vat and nationwide agents charging in excess of £500+vat.  Would a CAP on fees be fairer?  

To pass tenancy application fees onto landlords would be unfair in our minds but as such a small, reputable and family run business are we to absorb the costs that are associated with an application such as credit references etc? The consultation period will begin in the new year and as members of  NALS, Safe Agent and The Property Ombudsman as well as the Federation of Small Businesses, we can only hope that they are fighting the corner of small and trusted agents such as Stuarts.

 


  • Colin Hayes
    Colin Hayes
    10:58 21 Jun 17
    The property was let to the other viewer on the day, they acted quickly and had secured it during the viewing, all applicants are informed it sadly is a first comer first served basis. This is a very fast moving market and sadly sometimes this happens.
    Joy Sadeghiani
    Joy Sadeghiani
    13:46 06 Mar 17
    What a fabulous letting agent Stuarts are. Their attention to detail in fantastic. Everything you need to know is clearly explained on the website. Their customer service is second to none and they are always happy to answer any queries a potential tenant may have. I would highly recommend using this letting agent.
    kati pasztor
    kati pasztor
    16:20 07 Mar 17
    I have been with the company with over 7 years. I would highly recommend them to anyone who is after a secure and well looked after rental. Claire, Margaret and Colin are not only helpful but genuinely lovely people. Anytime I have a request they sort things out for me straight away. I feel safe and trusted in the properly I live in and if I would ever have to move, i'd definitely stick with Stuarts to find me a new home.
    Sue Jelks
    Sue Jelks
    13:35 06 Apr 17
    First class service provided, personally tailored to suit each client. As a professional accountant and tax advisor such excellent service is always appreciated especially to enable up to date planning with clients.
    Gemma Cullum
    Gemma Cullum
    15:45 14 Feb 17
    We have recently completed work for Stuarts Property Services at one of their tenanted properties. I would like to say a huge thank you for the work you have offered to us recently and what a great company you are to work for. All the best for the future and we look forward to continuing our good working relationship.
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