View more on these topics

Government unveils letting agent fee ban details

Payment-Fine-Currency-Money-700.jpg 

The Government has today laid out its plans to ban unfair letting agent fees in a drive to encourage better competition in the rental market.

The measures will stop hidden charges and end tenants being hit by costly upfront payments that can be difficult to afford.

The proposals also ban any letting agent fees being charged to tenants by landlords and other third parties.

 A statement from the Department for Communities and Local Government says: “The move will bring an end to the small minority of agents exploiting their role between renters and landlords, banish unfair charges being imposed and stop those agents that double charge tenants and property owners for the same service.”

Housing minister Gavin Barwell says: “We’re determined to make all types of housing more affordable and secure for ordinary working people. Tenants should only be required to pay their rent alongside a refundable deposit and not face hidden fees.

 “Our Housing white paper sets out other ways we will help those renting, including building more homes for rent and providing longer, family friendly tenancies.”

The Government is consulting on the proposals now.

 A report from the charity Shelter found that nearly one in four people in England and Wales feel that they have been charged unfair fees by a letting agent.

Fee levels vary considerably and the charity found that one in seven tenants pay more than £500.

Yesterday the Government announced rogue landlords face heavy fines as local authorities gained new powers to issue fines of up to £30,000.

 

Recommended

Letting agents banned from charging fees to tenants

Letting agents in England will be banned from charging fees to tenants under a policy announced in the Autumn Statement. Tenants moving into a new house can be charged numerous fees from referencing to credit checks and ‘administration’ fees. “Letting agents are currently able to charge unregulated fees to tenants, often of hundreds of pounds,” says […]

Estate-Agent-To-Let-Buy-Mortgage-700.jpg

59% of lettings agents say more would-be tenants than available properties

Tenants are facing increasing competition for rental property with 59 per cent of letting agents reporting more would-be tenants than properties available, according to the latest Association of Residential Letting Agents’ for Q2 2014. This figure represents the second successive increase, from 46 per cent in Q3 2013 to 54 per cent in Q1 2014, […]

Ombudsman complaints over house sales and lettings surge

Complaints to the Property Ombudsman about house sales increased by a quarter last year while complaints about lettings were up 22 per cent. At 10,179, there were nearly twice as many complaints about lettings last year than sales – 5,319. Complaints about sales rose from 4,261 in 2012 while complaints about letting rose by 1,845 from […]

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.