12th
October
October
Tenants Fees Bill
The new tenants fees bill is due to have a second reading in the House of Lords.
This bill is going to affect the whole property industry. The same fee ban has already taken place in Scotland and shook the industry to its core. 55% of letting agents disappeared overnight or merged with other companies in that case. It also increased rents for tenants by 7%.
The details of the bill are still up for debate. It could extend as far as including renewal fees, arrears fees and anything else that letting agents could charge.
Does this mean that landlords will pick up the bills? Will letting agents add it to the rent charge? Will landlords have a choice in future of letting agents? We anticipate that this will rock the market. A lot of landlords will lose out as estate agents who do lettings and sales go into liquidation. It could force Landlords to choose a new agent and the choice could be very limited in the future. How will it affect tenants? It will be good for them as there will be no fees involved. However, will there be a reduction in service? If letting agents are charging tenants for any form of their service the charges will be heavily landlord based.
It is going to be interesting over the next few months on how this progresses and we will keep you advised and updated on our newsletter.
Mark Harrington
Managing Director
iInsure365
