News
Letting agent fees to be scrapped in England
Tuesday 29th November 2016
Chancellor Philip Hammond has announced a ban on letting agent fees in England in his first autumn statement. The aim behind this ban is to protect tenants being unfairly exploited by hidden fees imposed by letting agents.
Since August 2015, it has been compulsory for agents in England and Wales to display their fees, however this move has not been effective enough to prevent rogue agents charging tenants costs that were not highlighted at the start of their tenancy. But is this a step in the wrong direction?
Calls for raising standards within the rental industry have been made but some fear this decision could have a negative impact on lettings. Banning all fees may result in higher rents as landlords look to recover costs passed on by agents. This move will see a drop in agents' income streams that cannot be afforded, leading to many shops potentially having to close.
With the introduction of the additional 3% stamp duty on buy-to-let landlords, this industry is certainly feeling the pinch and the question is what will the end result be?