The tenant fee ban
The tenant fee ban is coming and will be upon us before we know it. It would be wise to understand the implications for landlords and tenants and once they are more clear we will publish them here. The most recent update is that the ban on fees will become effective to all tenancies created from 1st June 2019
Essentially the UK Government is making most charges to tenants illegal from 1st June 2019 and it will become illegal for an agent, or landlord, to charge tenants any fees apart from those related to a default in the tenancy ie failing to pay rent on time etc. It is hoped that this will provide a fairer level playing field and more transparency across the sector. The Government believes that a landlord employs their own choice of letting agent and therefore the landlord should bear the costs involved in that decision.
For some years now we have seen uncontrolled increases in the fees levied to tenants while unscrupulous agents use this mechanism to 'appear' cheaper to landlords. It seems therefore that the only way of correcting this insidious trend is to ban those fees entirely making landlords pay for the costs incurred by their chosen agents
This all seems fair enough and at Rogers & Partners we will maintain our full compliance with the laws governing our business whilst seeking to minimise the overall effect to our valued clients. Together we will continue to provide good quality homes to good quality tenants whilst endeavouring to keep rent levels fair in the face of new legislation. It is inevitable that rents across England will be adjusted to take into account this paradigm shift so our valued landlord clients can rely on us to ensure that the returns on their investments are protected as always