The lettings agent tenant fee ban won’t come in until at least 2018 DCLG has revealed, with the consultation to be launched in the New Year.
Speaking this morning at the National Approved Lettings Scheme conference in London, Rachael Williamson, from the Department for Communities and Local Government, said it will work with the industry on forming a consultation but said primary legislation would be needed.
Chancellor Philip Hammond said in his Autumn Statement last week that a ban on letting agents fees will be introduced as soon as possible. However, ‘soon’ looks to be some 17 or 18 months away.
Williamson said: “The ban will need primary legislation as it can’t happen automatically. There is a lot of pressure on Parliament with Brexit.
“This will most likely be a third session Bill in Autumn 2017.
“It is not in anyone’s interest to see rents rising. The Government is coming from position of making life easier for tenants.”
If a Bill were to go through relatively quickly, a ban could be put in place in April 2018.
What a complete mess. A demonstration of serious incompetence from a Chancellor who has no clue about the Private Rental market place. Chaos and confusion prevail. Now is the time to work together and develop detailed plans that will ensure our businesses future success, and at the same time, allow us to deliver a world class service to landlords and tenants. Despite the interference from Government we will succeed.
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Whack them up as high as possible in the meantime just to make a point!
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The government first need to decide what they are actually trying to ban, and why. What they think banning will actually achieve, and what the consequences of a ban will be. Here is an industry that without any Government assistance whatsoever, has single handedly propped up the housing needs in England. There is a distinct lack of affordable housing, almost no new social housing, so without the PRS the Government would have a serious problem. Yet all they seem to do is plant more and more regulation on elements of the industry to try and tackle the few agents and landlords that are poor. Proper licensing and regulation of the industry is required, not regulating of fees (capping, removal or otherwise). Otherwise landlords will seek redress by potentially increasing rents, making yields better and perpetuating the cycle of removing homes from the first time buyer pool.
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As I said on the day, DON’T PANIC!
This now looks it’s around 18 months away from being implemented.
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Why don’t they just agree to a fee cap on the basis that the national average of pre-tenancy fees are apparently £202 per tenant, why not just cap them to the national average or reduce it.
Since it is the Landlord that requires the references then fair enough let the landlord pay it, but since the AST is wanted by both Landlord and tenants then split a fair fee, change the policy re the deposit’s and inventory and make a requirement that if a deposit is to be paid then the tenants should have a choice to pay for a check in at a moderate fee by the inventory company to confirm the inventory is correct and the tenant pays for the check out so that the inventory is fair and arbitration is minimal, after all the landlord pays for inventory (schedule of condition) which is what it really should be called I believe..
renewals well if both parties want to renew to fix the contract then both pay a share of a capped fee.
The Government made a mistake by saying they will ban fees, they should have said the fee structure will be looked at and proposals assessed which of course include Banning or capping.
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Well Franchisee, what a remarkably level-headed, analytical and sensible approach to the issue. Shame we don’t have a government / civil service that adopts the same methodology instead of headline grabbing stuff worthy of The Sun’s editorial team!
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I agree in part, but it is not necessarily the landlord who wants a tenant to be referenced, its their insurer and their mortgage provider, neither of whom would tolerate a situation where a landlord had put an unreferenced tenant in the property. Its also the licensed lettings agent following the best practice expectations of our parent bodies, the property ombudsman and our landlord clients!
Further, why should a landlord pay to have a tenant referenced who either does not take the property or does not pass referencing?
The ‘inventory’ is also best practice as long as it is carried out by an independent qualified body ie not the landlord or their agent. In our case we currently have the tenant pay for check in and the landlord for check out. I could agree though that a proper inventory does benefit the landlord a little more than the tenant, but only because, in the event of dispute, the courts will find in favour of the tenant should there be no inventory or one carried out by a person who is neither qualified nor independent. Any decent tenant will however feel reassured by a proper and independent schedule of condition.
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“Speaking this morning at the National Approved Lettings Scheme conference in London, Rachael Williamson, from the Department for Communities and Local Government, said it will work with the industry on forming a consultation but said primary legislation would be needed.”
Thought it had already been written, never mind drafted!
https://hansard.parliament.uk/lords/2016-11-18/debates/DFF19B1B-3A2F-4A8D-B203-FB239457ADC8/Renters%E2%80%99RightsBill(HL)
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