Agents have expressed their frustration over plans unveiled in the Queen’s Speech to cap tenants’ deposits to no more than a month’s rent.
Attendees at the latest Fair Fees Forum said it showed a lack of understanding on the part of the Government as to how the private rented sector operates.
The agents – who included Chestertons, Connells, Countrywide, Hunters, Northwood, Spicerhaart and Winkworth – will make further representations to the Government through the Forum.
The Forum also wanted the Government to ensure that the forthcoming legislation addresses attempts by rogue agents to circumvent the ban, for example by new charges introduced during a tenancy.
It was confirmed at the meeting that the Welsh government will be issuing a consultation on letting agent fees shortly.
The meeting heard that there have been 4,700 responses to the Government consultation on the ban in England – half of them from tenants.
Agents at the meeting also wanted to know about the timescale for the introduction of mandatory Client Money Protection. It was confirmed that the Government will consult on this.
The Property Ombudsman, National Approved Letting Scheme, Property Redress Scheme, National Landlords Association, Deposit Protection Scheme, Ombudsman Services: Property, and Shelter were also at the meeting, along with the British Property Federation.
The Department for Communities and Local Government, the Greater London Authority, and Welsh government attended in listening mode.
I’m not sure what the government is said not to understand about the way the market works. My relocation firm deals with rentals globally for corporate clients. One month’s rent as a deposit is pretty much a universal norm. It’s a fair, sensible cap in my view.
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Possibly because you’re in a different market place and so do not have tenants who fail to pay their last months rent, acquire their relatives pets or leave the property a disgrace?
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I am stunned at the ignorance of the commentator.
Clearly never dealt with real people.
Without a substantial financial penalty, a proportion of tenants will never clean up their own mess.
The old phrase, “Just take the last month’s rent out of my deposit” will reappear.
This will leave the landlord out of pocket.
Ever tried to return a hire car with no fuel? The refill rate is astronomic plus charges on top, all debited from your credit card.
Yet we are expected to hire out a property worth many times that of a motor car and risk thousands of pounds of damage in exchange for a month’s rent.
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Another Government done deal. The Government certainly know how to put the CON in conservative!
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I find it hard to believe that the government can’t distinguish between an agency fee and what will remain the tenants money.
If you have a pet, you are no longer desirable.
If you have adverse credit history, landlords will not take the risk.
If you have a bad landlord reference, you will not be able to rent.
This just leads to one thing, homelessness. Therefore putting more strain on the local councils who are already at breaking point. There needs to be some form of protection for landlords or they are out of pocket if a tenant turns rogue!
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^This. Exactly.
We have two tenants that we allowed to keep cats only on condition of an increased Deposit, by 2 weeks equivalent, thus 8 weeks rent total, plus a Pet Policy. This to just contribute part to the risk of having to replace say the carpet in one room that would cost c.£500+. (It only takes one piddle in the corner – have you smelt stale cat pee? Eugh!) We will not be prepared to take the risk/hassle in future.
We also have a Romanian national couple in another flat, who had no UK track record or credit history. It was a marginal decision, but his employer reference was excellent and they interviewed well, so we took the risk. But not in the future, on just 4 weeks Deposit cap.
There are further recent examples, just from our tiny, direct-managed portfolio. Tenants will suffer the blow-back from this idiotic idea.
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“The Department for Communities and Local Government, the Greater London Authority, and Welsh government attended in listening mode.”
Lets hope so, I am not against the ban in principle just want good workable law.
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If the real issue with fees is rogue agents surely this is very easily solved – you make it law that only agents of professional bodies can charge fees and then those fees and deposits are set by the professional body.
This way the professional body actually has some teeth and consumers cannot be ripped off as everyone is on a level playing field.
Obviously, the fees may need to be different inside the M25 but I am pretty sure the rest of us could still make a living and it has to be better than most of the alternatives?
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I charge one and a half months rent for a deposit usually, more if there is a pet with the landlords agreement. If there is a pet then I put it in the contract that the carpets must be cleaned before they leave. The months rent is in case they leave in arrears, and the half is in case of damage/cleaning etc. I’ve only stopped one deposit this year, and that was less than £150 for cleaning and replacing a broken loo seat!
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