11th Apr, 2019
We covered the upcoming tenant fee ban on our blog last month, and explored how this could affect landlords. It’s a very important and much talked-about topic in the property sector at the moment, which is why we’ve decided to speak to our MD, Amy Wray, to get her thoughts on the matter…
It’s a huge shame that the government has had to introduce this new legislation, due to some agencies unfairly overcharging tenants when setting up a rental – to cover costs of credit checks, referencing and drawing up the agreement.
But this fee acts as an important income for estate agents – including our own – which means that the loss has to be recuperated from elsewhere. It has been predicted that the industry will see a 15-20% reduction in turnover following the ban, which will inevitably have a devasting effect on some businesses.
We have personally been working on a solution for the last 12 months, in order to devise a cost neutral answer for landlords and tenants alike – we don’t want anyone to have to fit this bill.
However, it is likely – as per the UK predictions of a sector rise – that the majority of firms, including Applegate, will unfortunately have to now pass these charges in some way onto the landlord. This will no doubt have a knock-on effect for tenants, as landlords will similarly look to up their rents to cover this cost. The fee ban is therefore likely to increase tenants’ payments over time, rather than reduce it!
We have fantastic tenants and landlords, who have been with us for many years now and have really looked after their properties, which makes it very frustrating for us that costs and rents for all are likely to increase – but unfortunately this will be an issue for everyone in the industry.
More information on the ban will be relayed to our landlords during April.
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