Tenant Fees Act set to raise Agents Fees to some Landlords by over £500pa
The Tenant Fees Act became law on 12 January 2019, and will be implemented on June 1 2019.
The ban on letting agencies charging tenants fees, could actually end up with agencies passing the lost revenue costs on to landlords.
From June 1, letting and estate agents will be prevented by the Tenant Fees Act from charging tenants fees when taking on a new agreement. Shelter's latest figures, quoted in the government's impact assessment, suggest that 14% pay more than £500pa - one letting agency even charged tenants £300 to view a property.
The government projections for the total cost of the move to the letting agents, compared to figures from Arla Propertymark, appear to under estimate the loss to estate agents, which could amount to £200,000,000pa. This funding gap may lead to a hike in costs to landlords, which could rise to an average £275 a year.
This raid on Landlords profits will coincide with owners feeling the pinch from the s24 Tenant Tax, a move which could lead to some landlords effectively paying for the privilege of letting their property.
Landlord Solutions can bring relief for landlords from the effects of the Tenant Fees Act and the s24 Tenant Tax, along with a range of recent adverse regulations. Fill in our short form here to find out more.