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Changes to Letting Agent Fee – Not Yet Law But Imminent

First of all, we would like to reassure our clients that we have no intention of hiking up our fee’s in anticipation of a new law, which will see a total ban on letting agency fee’s charged to tenants, in line with a law already passed in Scotland. Whilst I personally agree that a cap should be instigated, I am not in agreement with a total ban. A contract between two parties should incur costs to both parties held to contract, within reason. Unfortunately the decision has been taken out of the hands of the businesses and decided by politicians who are out of touch with the reality.
I will summarize my opinion as follows;
The Government are responsible for there being an extremely low ratio of social housing to tenants. They are also failing to ensure enough affordable housing is constructed. New homes, particularly in our ‘highly desirable but low wage’ region are far from affordable. Two bedroom homes are closer to the £200,000 than the £100,000 mark. Something needs to be done, but trying to push responsibility onto the private sector is wrong and I have no doubt it will backfire, but time will tell of course. Premier Lettings has, and always will, remain dedicated to offering the best value service to our customers at the best possible price. We have always been cheaper than the larger agents, and statistics prove we are a leading local agent offering the same, if not better value, outstanding service.
In addition to the ban on letting agency fee’s, some landlords have major concerns about the changes to personal tax laws, due to roll out next year. Initial polls taken among the landlord community indicate this will greatly affect a large number of private landlords, with some already deciding to part with their investment. See the poll here on Property 118 by copying and pasting the following link into your browser:
https://www.property118.com/extra-tax-on-landlords-will-hurt-agents-more-than-fee-ban/92564/