Labour proposals for the private rented sector include the eradication of letting agent fees. However, Scottish experience suggests that rents will increase to cover lost costs, so says LSL Property Services.
Labour proposals for the private rented sector (PRS) include banning letting agent fees; something that the RLA argued several months ago would be detrimental for tenants. See: “Labour’s plan will increase cost of rents”.
Information gathered implies a £26 per month increase in rents in Scotland. Two years ago in 2012, before a ban on letting agent fees was implemented, rents were stable at £508 per month. Today, rents are on average at £534.
Advocates of the ban would argue that inflation will have played a role in this increase, and not the outright ban of letting agent fees.
The RLA take a different approach and warned, over a year ago, that the ban would result in greater costs for landlords. See: “Shelter want an end to agent fees”.
Simply put, it would be prudent of Labour and policy makers to consider the ramifications of proposals for the very people they are trying to protect.