The Chartered Trading Standards Institute will be among a number of bodies expected to share their views on the Draft Tenants’ Fees Bill later this morning.
Alison Farrar, lead officer for the Chartered Trading Standards Institute, will appear before MPs on the Communities and Local Government Committee from 9.30am.
The select committee is analysing the private rental sector and also providing pre-legislative scrutiny of the Draft Tenants’ Fees Bill.
Also taking part will be:
- Andy Fisher, head of housing, health and communities, Boston Borough Council
- Cllr Robert Lawton, portfolio holder for housing, Bournemouth Borough Council
- Cllr Clare Salier, cabinet member for housing, London Borough of Wandsworth
- Melanie Rees, head of policy, Chartered Institute of Housing
- Tamara Sandoul, policy manager, Chartered Institute of Environmental Health
Generation Rent and Shelter, key campaigners for the ban, have already appeared, along with the Residential Landlords Association and National Landlords Association.
At the end of last month, David Cox, chief executive of ARLA Propertymark, and Isobel Thomson, chief executive of the National Approved Lettings Scheme, warned the Committee of the unintended consequences of the Draft Tenants’ Fees Bill.
Cox, who repeated warnings that the ban would result in a loss of income for agents and subsequently lost jobs, demanded more clarity on the issue of whether or not agents could charge tenants default fees.
Comments (9)
There seems to a general misconception that it’s the independents that charge the rip-off fees. Totally the opposite in the areas we operate in. In fact we regularly check our competitors charges to both landlord and tenant (where published) and it is the case that large chains charge more, and by some considerable margin.
Greed made them as big as they are and now they feel untouchable as they mop up the small independents who are too afraid to carry on at fear of going under.
Keep going, soon customers will have the same two or three agents in every town all charging the same and getting away with it because price fixing doesn’t exist, “Does it”
I can see the Government’s point that there are a lot of unfair tenant fees out there. We all know that and I don’t think that any of us would argue that there are greedy g*ts out there who will fleece everyone for everything they can.
But this is the same as banning a whole class having a break as one or two kids wouldn’t sit quietly. Yes, a fee cap would be harder to police, but if all tenants are aware that they wont pay more than £250 (plus rent and deposit) for a tenancy, then Greedy McRipoff Agents next door will go out of business if they try to charge £400 as no-one will pay it, and Landlords will go to another Agent.
And lets face it. We cant charge the Tenant, so Landlords fees will increase. They will then increase the monthly rent. Lets say the rent before was £450pcm. The Landlord puts that up to £475 per month to cover his cost, over a 6 month tenancy that is £150. If the Tenant is happy to stay for longer, then eventually the cost will mount up, especially with rent reviews.
So lets work the hypothetical math, shall we? Tenants no longer pay £250 fee for referencing etc. Landlord puts £25 on rent, over a 12 month tenancy the Tenant pays £300 extra. After 12 months, the Landlord increases the rent by 5% and the rent goes up to £498.75. and so on.
These figures are just hypothetical obviously, but it shows that this is not going to save tenants money! Oh, but lets not forget, the managing agent pays VAT on what they charge the Landlord! so if we say they charge 10% plus VAT, the government will be getting £3 extra, per property, per month… is this possibly a consideration in their plans…?
Countrylass, lets do the math.
”And lets face it. We cant charge the Tenant, so Landlords fees will increase. They will then increase the monthly rent.”
So in a post fee ban world, you’re now increasing landlord fees so you’re not out of pocket here. Now the Landlord puts up rent and you maintain you management fee % (10%) your now making £2.50 more per proerty per month for doing nothing more, and then more everyyear after.
You’ll be quids in so cheer up!
I was meaning the fee a Landlord is charged to set up the tenancy, not that the management fee increase would cover it. If a landlord was being charged, say, £400 + VAT to start a tenancy, some agents would shove the whole tenant fee on to that, so possibly a landlord would be paying £800 +VAT.
Where is the Landlord going to try and recoup his money? Either by cutting corners on maintenance etc or by increasing rent.
In all honesty, I can’t see this ban doing anything but costing tenants money.
The Government has responded to the petition you signed – “Reverse A Proposed Ban On Letting Agents Charging Fees To Tenants”.
Government responded:
“This will allow letting agents time to prepare and re- negotiate their contracts”. It’s a done deal with agents left in the dark as to what the legislation is that .they have to negotiate. Muppets all of them!
A big problem with the Scottish model is that the Courts get the final say. S.21 takes away the Judge’s jurisdiction. As we all know, get your arrears under the 8-week ‘minimum’ and you’re going nowhere. My house, my rules or I’m taking my ball home (selling the property) and nobody gets to play (have a rental property in the marketplace)…except I still have the ball to play with at home (the money from the sale of the property to invest elsewhere!
I got the same email, it’s the same ******** letter I got from the then housing minister when the whole thing kicked off and again from the current housing minister when I wrote to him about all the downsides of a ban and the upsides of capping. The words done up like a kipper spring to mind!
It’s already been decided!