A ban on letting agent fees paid by tenants will increase market rents – hitting hardest the tenants they are designed to help.
Housing Minister Gavin Barwell MP said in a tweet just weeks ago that a ban was a: “Bad idea – landlords would pass costs on to tenants via rent. We’re looking at other ways to cut upfront costs & raise standards.”
Just last week, the Communities and Local Government Minister, Lord Bourne, also expressed reservations about such a policy warning that “we must be mindful of the potential impact on rents from banning fees paid by tenants.”
Alan Ward, Chairman of the Residential Landlords Association said: “This will not help tenants, especially those that are ‘just managing’.
“Agent fees have to be paid by somebody. If any additional fees are passed on to landlords, tenants will end up paying them forever as market rents will increase.
“It would have been much better for the Government to have taken steps to improve the transparency of fees charged by agents by forcing them to publicise what the fees actually cover.”