Industry news


Consultation on banning letting agent fees launched


competition in the rental sector sector have been set out by the Government. The consultation period runs for eight weeks and is due to close on 2 June. It primarily looks at how the ban should be implemented and enforced. Stakeholder workshops were organised as part of the consultation exercise with events arranged in London, Birmingham, Manchester and Bristol. However, one of the main representative


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bodies for private landlords quickly attacked the measures as “short-term crowd pleasers” that would ultimately cost tenants more money. Key points within the consultation are: Government intends to bring forward a full


ban on upfront fees charged by lettings agents. Fees associated with ongoing services, such


as providing replacement keys, carrying out repairs as a result of deliberate damage or breaches of the tenancy agreement, or late rent payment charges will not be banned. It will examine whether holding deposits collected by agents at the start of a tenancy


ew measures to provide a fairer deal for renters by banning unfair letting agent fees and encouraging greater


should be capped. The DCLG is collecting responses via an online


survey for the consultation and by email to lettingagentsteam@communities.gsi.gov.uk.


Hidden charges


The proposed measures are intended to put an end to hidden charges and avoid tenants being hit by costly upfront payments that can be difficult to afford. But commenting on the consultation launch,


ARLA Propertymark Chief Executive, David Cox said: “The Government’s housing policy is shambolic and this consultation contradicts its already stated aim to encourage longer term tenancies. Independent analysis launched at ARLA Propertymark’s annual conference revealed that if an outright ban was introduced, rents will increase by £103 per year which will punish long term tenants financially. “The decision is a short-term crowd pleaser


and we are disappointed DCLG has not considered our proposals in the consultation. We urge the Government to use this process to think again to ensure that consumers, and the


wider economy are not penalised by contradictory Government policies.” Ministers hope the package of measures will


bring an end to agents exploiting their middleman role between renters and landlords, banish unfair charges being imposed and stop those agents that double charge tenants and property owners for the same service. Proposals also ban any letting agent fees


being charged to tenants by landlords and other third parties. This stops tenants having to pay fees through the back door by other routes. Government says the measures will improve competition in the private rental market, which has been the fastest growing part of the housing sector and further drive up standards by placing the onus on landlords to shop around for more competitive fees for services they pay for. Housing and Planning Minister Gavin Barwell


said “We’re determined to make all types of housing more affordable and secure for ordinary working people. Tenants should only be required to pay their rent alongside a refundable deposit and not face hidden fees.” A report from the charity Shelter found that


nearly 1 in 4 people in England and Wales feel they have been charged unfair fees by a letting agent. Fee levels vary considerably and the charity found that 1 in 7 tenants pay over £500. The ban also recognises that landlords are


being hit with dubious fees. The measures create a more transparent market place so landlords can easily shop around for an agent to provide the quality of service they want at a price they are willing to pay. This avoids double charging and results in a better and transparent service.


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16 | HMM May 2017 | www.housingmmonline.co.uk


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