Franchisees across the Belvoir network are being urged to write to their landlords and tenants warning them of the consequences of Labour gaining power and implementing proposals for rent capping and outlawing agents’ fees.
Dorian Gonsalves, director of commercial and franchising for Belvoir, said that Labour’s proposals were “flawed” and likely to result in landlords quitting the private rental sector en masse, making thousands of tenants homeless.
He said: “The Labour party is blatantly targeting the private rented sector to try and win votes from the UK’s nine million tenants.
“However, in my opinion their proposals are not only anti-letting agents, they are also anti-business and will in fact harm tenants – the very people that Labour say they want to help.
“The most recent figures released by the Office of National Statistics estimate that for the year ending September 2014, net long-term migration to the UK was 298,000 and yet the number of new homes built last year was only 118,760.
“A combination of high migration figures, low new-builds, plus the difficulties that people face in obtaining mortgages and changes in lifestyle choices, such as increasing numbers of single parent families, means that many more rental homes are needed in this country.”
He went on: “The majority of letting agents work extremely hard on behalf of tenants as well as landlords and it is completely appropriate that tenants bear the cost of this work rather than landlords.
“Outlawing tenant fees will simply mean that tenants will suffer, with letting agents unable to provide them with the standards of service and levels of protection they deserve.
“Tenants could easily become vulnerable to rogue private landlords who may try to take advantage of them by illegally charging for maintenance issues, failing to carry out regular property checks and leaving them without redress to an ombudsman.
“If landlords are forced to bear the brunt of increasing costs, but are unable to increase rents to help cover them, many are likely to sell up or put their property to different use, further reducing the level of good-quality rental properties in this country. As a result, thousands of tenants could become homeless, because there will be nowhere for them to go.
“I firmly believe that Belvoir is in a strong position to cope with the effects of any proposed changes to legislation.
“However, I also believe that these changes could result in the industry contracting as landlords exit the market and independent agents find it difficult to survive.
“I am encouraging all Belvoir franchise owners to write to their tenant and landlord clients to make it very clear to them that if Labour get into power they will implement proposals that will result in increased landlord fees.
“This will either force landlords to increase rents to help cover their costs or cause them to sell up, which could put thousands of tenants at risk of losing their homes.”
“I firmly believe that Belvoir is in a strong position to cope with the effects of any proposed changes to legislation.”
And so are we – I was in parliment a couple of weeks ago discussing this very issue wih Emma Reynolds (Labour Shadow Housing Minister & No Relation) – She did say she would ban letting agent fees if they got into power, but she also said that she won’t be interfering with what rent the landlord and tenant agree on. The assumption they will introduce rent controls is a flawed one.
What they are proposing is the rent can only be increased in line with inflation which is what we do anyway, and none of our landlords argue this point because contrary to popular belief, the majority of landlords are sensible and ethical business people.
My own properties have not seen a rent increase for at least 2 years because we love our tenants and they love us – Happy tenants in happy homes
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What about those who don’t have homes? Are they happy too? Shall we all just ignore those?
Sticking ‘MP’ after someone’s name doesn’t bestow magical super powers or gift otherwise ordinary people with skills and experience they lack.
The sooner Housing becomes a consistent and apolitical department the better as far as I am concerned.
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Quote 1: “. . . rent can only be increased in line with inflation, which is what we do anyway”.
Quote 2: “My own properties have not seen a rent increase for at least two years”.
So which is it? Do you increase your rents in line with inflation, or do you make a business decision to keep the rent at the same level because you’ve got good reliable tenants?
Because that’s the irony. If rent increases are prescribed they don’t just prevent “excessive” increases, they prevent downwards movements too. A bit like Labour’s proposed energy price freeze which would have locked in the higher energy prices of 12 months ago instead of letting them fall.
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Absolutely spot on!
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Answer To Quote 1: “…and none of our landlords argue this point because contrary to popular belief, the majority of landlords are sensible and ethical business people.”
Answer To Quote 2: “…My own properties have not seen a rent increase for at least 2 years because we love our tenants and they love us – Happy tenants in happy homes”
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Eh?
So you put up your landlords’ rents in line with inflation without consulting them first (which is what you appear to be saying) , and your landlords don’t argue because they are “sensible and ethical business people”. However, when it comes to your own properties you make an informed business decision on a case-by-case basis.
That doesn’t sound very ethical to me.
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Well lets hope Labour do not get into power then because their stance with regard to Lettings fees is not one born out of concern it is an electoral soundbite. Why shouldn’t the cost of setting up a tenancy be shared between a landlord and a tenant, why shouldn’t a tenant be asked to demonstrate they are financially committing to a tenancy showing their credibility as a tenant. You remove those things and you open up landlords to even more unscrupulous tenants who do not pay their rent and force landlords into very expensive legal action to get them removed.
As for Marks comment about rents only being raised in line with inflation, since when does a capitalist economy run with guidelines like that. When did we suddenly become a communist state where everything is equal. Market forces dictate rents both up and down. Can anyone genuinely advocate that a property owner should not be able to ask or get whatever they can for their property!?!!
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How can they expect us not to charge admin fees when we are burdened with so much administration. Who will carry out this work and make sure it is done correctly. Will the tenants want to pay a solicitor to draw up or check the AST or the associated documentation including prescribed information. I don,t think so. The majority of tenants are happy and settled anyway, I am sure they can look after themselves. labour should target the vulnerable and the unscrupulous Landlords, the types of whom we have all met over the years to protect the needy. Leave business alone, the politics of envy will keep Labour in second place I hope.
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So if it costs nothing upfront for a tenant to rent a property, would they not look at say 4 or 5 properties say they want to go-ahead with all of them at different agents, pay nothing and then when all of the references have been done then hammer down the rental price and just go for 1 of them.
At the moment the tenant gives some consideration by paying a fee to start the referencing process and thus a contractual relationship is formed, if no consideration is passed how will that affect matters?
If fees were banned it would kick into touch many agents – I would think its about 40% of the income over a year assuming a turnover of tenants. Typically we make about £800- £1000 per landlord per year and about £300 -£400 per letting from tenants. How that would then be recovered from the Landlord would be one off fees the tenant pays to the LL if the law allows or simply increase the rent for the first month from say £1000 to £1400 then back to £1000 and charge the landlord £400 in the first month. Perhaps the rent will just revert to £1100 perhaps this will cost the tenant more.
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I was at the husting meeting where emma reynolds addressed landlords. How can any politician say we are not bringing in rent control when they say they will control rents but restricting any increase to cpi or similar. THIS IS RENT CONTROL Ok not as serious as the 1970’s controls but it will be the thin end of the wedge. It has been seen how Councils like Croydon interpret selective licensing as WHOLE BOROUGH. These people only wish to further their power and tax anyone they can. If licensing were true licensing it would be one fee per landlord or agent NOT EACH PROPERTY. These people are no better than internet scammers. What is sure is that tenants will end up paying more – nothing in life is free!
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Its a sad fact that Labour don’t know how business works, couldn’t run one and shouldn’t meddle with any.
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