Fair Fees Working Group to follow ‘will of Government’ over lettings charges

The Fair Fees Working Group has vowed to provide data and evidence of the implications of the shock lettings fee ban announced by the Chancellor last week, with some members saying they will provide arguments against the move.

The newly formed group, set up by the National Approved Lettings Scheme Fair Fees Forum initiative, held its first meeting last Friday just two days after the lettings fees ban was announced.

It is already planning to present its response directly to housing minister Gavin Barwell.

Attendees at the Working Group include Belvoir, Chestertons, Northwood, Spicerhaart, Touchstone, Winkworth, British Property Federation, Shelter, Residential Landlords Association, Greater London Authority, Ombudsman Services: Property and the Property Redress Scheme. Representatives from the Department for Communities and Local Government also attended.

ARLA was invited but was unable to attend.

The Group agreed to make work the “political will of Government” and to respond to the consultation on the changes in the New Year.

Some unnamed members of the Group also reserved the right to make counter proposals to an outright ban.

The Group said in a statement that it would provide information on

  • Definitions of what fees are, and what charges are;
  • Reviewing the experience of a fee ban in Scotland, identifying where the process of bringing in a ban could be improved in England;
  • Implications of the ban and how it will be enforced.

The members of the Working Group will request a meeting with housing minister Gavin Barwell to present the evidence once collated and explain the implications of any ban.

The statement said: “Following the Government’s announcement in the Autumn Statement that they intend to ban letting agent fees, the Working Group discussed the impact of the announcement, their surprise at the decision and the potential impact it would have on tenants, landlords and letting agents.

“In what was a very open and productive discussion, members of the Working Group agreed they were committed to making work, what is now the political will of Government.”

The statement said invitations to attend future meetings would be extended to other bodies, adding: “The Group will reiterate an invitation to bodies who previously did not attend the Forum, including ARLA and The Property Ombudsman, and will open the invitation more widely to the National Landlords Association and the Royal Institution of Chartered Surveyors.”

The next meeting of the Working Group will be in early January.

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19 Comments

  1. eltell

    Would a representative  of ARLA care to explain why they were ‘unable’ to attend the meeting?

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    1. Woodentop

      Just about sums up what many think of ARLA. Only one person can do the job and they are not very good at it. A fish rots from the head down!

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    2. Tim Hall

      ARLA’s official response:-

      David Cox, Managing Director, Association of Residential Letting Agents, said: “ARLA was not invited to last Friday’s meeting of the Fair Fees Forum. However, on Thursday we will be attending a meeting of DCLG’s Affordability and Security Working Group, which has been looking at the issue of tenant fees for several months, where we hope to get a better understanding of the Government’s thoughts after last Wednesday’s announcement. But rather than taking any knee-jerk reaction, we are carefully considering our strategy on the letting fees ban in order to ensure our campaigning in the months to come guarantees that the views of letting agents are heard loud and clear at the very highest levels of government.”

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  2. jeremy1960

    ARLA unable to attend a meeting discussing what is probably the most important issue affecting their members!!? In any other situation they would face a vote of no confidence. Time for someone who has some passion for our industry to stand up and those who clearly have another agenda to pack their bags and leave the room!

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    1. AgentV

      Just cannot understand how as an organisation you could fail to get someone to the meeting with so many others attending.

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    2. revilo

      It’s disgraceful!

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    3. new life

      For years I was a fervent advocate of the ARLA brand but after a number of conversations with membership and David Cox over their membership criteria I for one am glad that this highly paid organisation no longer speaks for me or my business their lack of attendance shows no respect for the very members that pay their wages.

      The voice of the industry I think not this industry is far too divisive to ever bring about a meaningful change to our industry.

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    4. Tim Hall

      ARLA’s official response:-
      David Cox, Managing Director, Association of Residential Letting Agents, said: “ARLA was not invited to last Friday’s meeting of the Fair Fees Forum. However, on Thursday we will be attending a meeting of DCLG’s Affordability and Security Working Group, which has been looking at the issue of tenant fees for several months, where we hope to get a better understanding of the Government’s thoughts after last Wednesday’s announcement. But rather than taking any knee-jerk reaction, we are carefully considering our strategy on the letting fees ban in order to ensure our campaigning in the months to come guarantees that the views of letting agents are heard loud and clear at the very highest levels of government.”
       
       

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  3. Woodentop

    This might provoke a response but what about NAEA? Many of their members have lettings, if you are inviting RICS. Between them they have more clout than any others with Government?

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    1. Tim Hall

      NAEA agents only deal with sales. If they want to deal with lettings they HAVE to join ARLA. The reason given is that ARLA and NAEA are both part of the larger NFOPP organisation.

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  4. Woodentop

    Please can we have the names of the individuals that attend these meetings, hiding behind company names is not good enough?

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  5. AgencyInsider

    WOT? No INEA attending the meeting or being invited to the next one? Trevor won’t be pleased…

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    1. Robert May

      Cartel?

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  6. ringi

    The 3 issues I have are:
    What will stop tenant applying to rent many properties if there is no cost doing so?
    How can a landlord be expected to take a property of the market before the day the tenant moves in (and signs the AST) if the tenant has not make a financial commitment?  (Therefore the landlord/agent will have to reference many tenants encase one changes their mind.)
    What can student landlords do who have to sign up students for the next year but can’t sing an AST as some of the group don’t yet have the VISAs needed for “right to rent”?
     
    Remember that a landlord signing a AST before the current tenant moves out is a big risk, and “holding deposits” are not allowed in Scotland according to Shelter.

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  7. BillyTheFish

    All I read: “ARLA was invited but was unable to attend.”

    HOW MANY OF YOU HAVE CONTACTED ARLA TO ASK WHY?

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    1. Woodentop

      Good point but does this raise the concern they didn’t see any value in such a meeting or was “he and they” all off on hols? Whatever the excuse someone from ARLA should have attended even if only to take notes. This was an opportunity lost and they want the Government to take them seriously…. sorry I’ll rephrase that to … members expect to be taken seriously through their trade organisation attendance.

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    2. Tim Hall

      Also worth noting TPO did not attend either – the “preferred” Ombudsman scheme for ARLA.

       

      There is more to this than just “ARLA was invited but was unable to attend.”

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      1. Tim Hall

        Just asked David Cox at ARLA why they didn’t attend.

        His reply, and I quote – “The simple answer is that we were not invited to last Friday’s meeting.”

        ARLA will do what it can – but it needs the support of it’s members to do this, and, as I have said before, WE ALL NEED TO SPEAK WITH ONE VOICE!

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        1. Tim Hall

          ARLA’s official response:-

          David Cox, Managing Director, Association of Residential Letting Agents, said: “ARLA was not invited to last Friday’s meeting of the Fair Fees Forum. However, on Thursday we will be attending a meeting of DCLG’s Affordability and Security Working Group, which has been looking at the issue of tenant fees for several months, where we hope to get a better understanding of the Government’s thoughts after last Wednesday’s announcement. But rather than taking any knee-jerk reaction, we are carefully considering our strategy on the letting fees ban in order to ensure our campaigning in the months to come guarantees that the views of letting agents are heard loud and clear at the very highest levels of government.”

          Report
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