Letting agents hit out at the fees ban during yesterday’s heated NALS conference in London – while chief executive Isobel Thompson said of the ban that there was no point fighting losing battles.
You could feel the tension simmering as Rachael Williamson, sent from the Department for Communities and Local Government to do the dirty work of Hammond et al, announced that the ban on tenants’ fees is not likely to be implemented until 2018.
During discussion following the talk, agents questioned why they were being targeted when rogue landlords seem to be let off the hook. Agents asked how they were expected to cope with increased costs, and asked if better regulation would not be a better solution.
Asked about rent caps, Williamson insisted such an idea was off the table, but there was recognition that the consultation on a fees ban could discuss allowing letting agents to offer services at cost.
She said: “The changes need primary legislation which won’t happen until autumn 2017. There is a lot of pressure on Parliament with Brexit, so the ban most likely won’t happen until 2018. We want to make sure we get this right and work with the industry.”
Williamson also said a review by Baroness Hayter and Lord Palmer into compulsory Client Money Protection would report to the housing minister this month.
Isobel Thompson, chief executive of NALS, said the industry had the “rug pulled out” from under its feet by the Autumn Statement last week.
Speaking to EYE, she said the sector was well positioned to respond, as the Fair Fees Forum working group had already been established and will continuing working.
Asked if there was any scope to actively oppose the ban, Thompson said: “We have to focus our energies on making this work. There is no point in fighting losing battles.”
At least agents could be consoled by a delicious lunch buffet. But while the Government may well want to have its cake and eat it when it comes to Brexit, it seems many agents are finding these changes harder to swallow.
There was some light on firms trying to help the industry keep on earning income. David Hadden, head of property at insurer Endsleigh, said he expected the industry to get more entrepreneurial in response to all the changes.
The company unveiled an offer for NALS members to get 30% commission on referrals to their products such as rental protection insurance or tenant referencing.
Separately, yesterday’s conference heard that there are 16.3m searches for home renting a year.
Daniel Ramsay, industry manager for Google, said agents should be thinking about the questions people are likely to have when searching online and how agents will show up on a search platform when people find their answers.
Comments (8)
Thompson said of the ban that there was no point fighting losing battles. Wrong attitude and a defeatist, just the type of person one does not need as a head. Not fit for purpose. You should be fighting to the very end and not giving reason for government to think they can now go ahead and do as they please as we will roll over. They have Thompson sewn up. Stupid, stupid, stupid.
Asked about rent caps, Williamson insisted such an idea was off the table. Maybe at this moment? Lets have that in writing please, as the opposition party have that exact agenda and made it public.
HA! “Offering services at cost…” Now let me think. I wounder if the referencing companies costs might go up, and a commission paid back to the agent.
Banning agents charging fees, will not stop tenants having to pay at some point. They (the Government) really do need to get with the program, and look at things like, how many people are employed in the lettings, management and associated companies industry. How did this industry come about and why?
Typical British view, get good, and cut them down – we do it to sports people, entrepreneurs and now a whole industry….
At least the govt pretend to be interested in consulting to ‘get this right’. Funny how they totally refused to consult, and secretly sprung on us, the even more stupid and ruinous Section 24 which bankrupts good landlords and will knock agents incomes by up to 20%. This govt is not Conservative in any way. They are interventionist, selfish, anti-business, anti-capitalist, moderate-to-hard left who hate property, hate the PRS, hate agents and landlords, and hate the fact some people are making livings from it!
Rogue Government, driving through matters without detailed and proper consultation. Welcome to the british version of Cuba without the quality of health care!
Sadly most agents whinge after consultations and government rubber stamps. More agents need to voice facts to government pre changes. Not once the horse has bolted.
As for bad landlords. Theres many that will come unstuck and whether a tenant goes through a good/bad agent or landlord direct. Consumers need redress.
A ban on fees has an easy no cost solution should agents want one.
Losing battles? The people introducing a ban seem to have done so with too little information to hand and what appears to be biased data.
Safe agent correctly identified rogue agents as a threat to the future several years back. To us outside the commuter belt of London that was a bit of a mystery, rogue agents what’s all that about?
London and that commuter land has a set of issues that need addressing, banning fees will adversely affect every stakeholder to benefit a relatively small section who have genuine accommodation problems.
Tackle rogue agencies ( I’ve built that) cure the excesses (I need help with that bit) and in 18 months time allow everyone to choose between the 3 routes forward. My guess is a fair system on tenants that does away with the crooks and greedy will find favour with everyone.
I am not sure you can point a finger constantly at just London agents Robert. If this was the case then Scottish parliament would not have done the same some time back. Having spoken to a few friends who also have children at universities throughout the UK the agents in these towns also take the mickey with tenants fees. I am having to pay near enough £600 tenants fee for my Son and he is occupying a house with 5 others all paying the same, how do they justify that! Please stop just picking on us London agents,we are not all at it! I hope that fee’s will be capped but I doubt that will happen.
If you do the background reading into those most active in lobbying for change in legislation London is all they go on about, London is providing their evidence. Far from picking on you decent guys I am the one who has built the software to distinguish you from the anonymous rogues and crooks who are disguising themselves as decent and honest.
I am the one who will go belly to belly with authorities who are going to impose change on you and the honest and decent agents well away from where you are.
Because I mention who it is causing the problems I am not tarring you all with the same brush unlike; Citizens advice Shelter, Which, CLG GLA Generation rent etc.