Yay for Low tenants fees, not so happy about high rents 

On the 23rd November 2016, it was announced that there would be a ban put in place for tenants fees. This means tenants would save fees paid for administration when they move into a property.

In a article published by the BBC News, chancellor Mr Hammon said “shifting costs to landlord will save 4.3 million households hundreds of pounds” 

A surgery publishing the Guardian news paper in February this year, claimed that more families rent in the UK, then own there own homes. For a lot of people this would be really good news right? Wrong. 

Landlords are mainly investors. This means purchasing a house, with a buy to let mortgage to rent out, is so that they will make money and get a good capital growth. 

They want to save as much money on outgoing e.g. Fees and earn the most they can in rent. If the cost of fees lost by tenants is shifted to the landlord, the only way for them to cover their loss is to demand higher rent for the tenants. This results in house prices rising again!

In the last few years, the government has enforced many new laws that estate agents and landlords must carry out for a move in. They now have to supply tenants with government how to rent guides, copies of has safety certificates and EPCS. They have to do immigration checks and keep up to date with government guidelines. October last year, it and law to make sure smoke alarms are fitted on every floor and that they where tested on the day of move in. If a gas safety is invalid for over one day, then landlord can not service notice. All of this, plus fully referencing tenants and all the paper work that goes with it for each move in that an estate agent does.

Where does that leave estate agents? Doing double the work that they would of done maybe ten years ago? And doing this without any payments from the tenant.

I personally believe feel this will effect small independent estate agents. As landlords will shop around for cheaper fees and the bigger companies will seem more preferable.
David Cox, director of ARLA made this statement regarding the issue.

So before we get excited about saving a couple of hundred pounds, let’s hope they find a solution to save money on higher rents. 
Dominique Lennon 

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