Update on Ban on Tenant’s Letting Fees
MP Kevin Hollinrake – who co-founded Hunters Estate Agents of which he is now chairman – is sponsoring a Parliamentary debate on the proposed ban on letting agency fees in England.The debate is on Wednesday, September 6, at Westminster Hall between 9am and 11am.See the article on this by using the link:http://www.propertyindustryeye.com/letting-fees-mp-kevin-hollinrake-initiating-westminster-debate-on-ban/It is therefore likely that more details will be known thereafter and we will have a better understanding of the extent of the ban plus the effects on deposits.It is now expected that any changes will be introduced in July 2018 rather than October 2018.Following on from the last update we issued in May and in anticipation of the results of the debate in parliament, in respect of managed properties we are likely to have to uplift the management fee charged to compensate for part of the decrease in income. Part will be made up by smarter working by Hazells.In respect of Let Only properties we also will be reflecting the decrease in income at present received from applicants/tenants in the fee charged. Again we will endeavour to reduce this to a minimum.To compensate for this increase in costs to landlords it is proposed that there will be an uplift in rents. In Scotland where tenant fees have been banned since November 2014 there has been an uplift in rents across the board of about 15%. Not all of this will be attributable to the ban on fees but it is indicative of what is likely to happen in England.We will continue to provide up-dates on this subject as more information becomes available.