Sansfords Estate Agents & Hamilton Fraser react to Autumn Statement

November 25, 2016

Andrew Ellinas, Director, Sandfords (estate agent in Marylebone and Regents Park)

“The news that the governmentÿis banning letting agents fees to tenants as soon as possible and that landlords should meet those fees, has left me struggling to see howÿthat’s fair. Granted there are some letting agents charging unreasonable fees, but on the whole tenantsÿhave simply been paying for a service required in order to rent a property. The devil will be in the detail, but it would seem thatÿthis isÿthe latest move to hit landlords whoÿare nowÿfacing increased costs.

Looking at the differentÿprinciple fees tenants currently pay, it’s difficult to see how they are going to be charged and to justify why landlords should pick up the bill. For example,ÿreferencing fees. Tenants have to be referenced, but if they subsequently fail those checks, preventing the tenancy from going ahead, who pays that fee?

What aboutÿinventory checks. How can you now expect the landlord to pay for the inventory at the beginning and end of a tenancy, it doesn’t make sense. A tenant pays for it on the way in for their own peace of mind and the landlord once the tenancy hasÿended so that they can check everything is still there and in good condition.

This could have a real impact on the Londonÿrental market. UK and overseas landlords will not welcome this news and will look to recover their incurredÿcosts elsewhere.ÿ ÿTenants may avoid a fee at the start of the tenancy, but there will be an unavoidable outcome of higher rents for them to pay.”

 

Eddie Hooker, CEO of Hamilton Fraser (parent company to Total Landlord Insurance)
ÿ
_We, of course,ÿsupport raising standards in the Private Rented Sector and initiatives to push out rogue letting agents, but we have concerns that an outright ban may have the unintended consequence of pushing up the already heavy burden of rents on tenants, especially in high demand areas. We called for additional enforcement to drive up standards in the industry only recently, but fear this isÿa step in the wrong direction and could in fact have an adverseÿeffect.
ÿ
This ban will increase costs on landlords who are trying to plug the gap in a difficult housing market.ÿParts of these costsÿare likely toÿbe passed back to the tenant through increased rents as a result. It could also have a negative impact on theÿrental marketÿas a whole with possible office closures and some agents having to shut up shop entirely.
ÿ
In addition, the Chancellor announced that insurance premium tax will rise from 10% to 12%ÿnext June and this will also have ripple effects for our industry. Paying a higher premium on essential cover, such as buildings and contents insurance could mean that some people avoid taking up insurance leaving them unprotected.
ÿ
Other measuresÿshould have been addressed by the Chancellor toÿhelp stimulate the market following Brexit, such as reversing the additional stamp duty on buy-to-let properties and second homes for landlords.”

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Breaking News

Why capital is staying in London despite a cooling housing market

By Joe Freedman, Head of Origination at ASK Partners London isn’t suffering from a lack of housing demand. It’s suffering from a failure to deliver. New data from Molior underlines the scale of that failure. Just 5,547 private homes broke ground across the capital last year, an 84% drop from a decade ago. Against an…
Read More →
Breaking News

The hidden risk of overvaluing your home when moving in today’s market

With many homeowners turning ambitious conversations into tangible moving plans, the start of the year traditionally marks a surge in activity, particularly for families planning for the future. While the property market remains fundamentally healthy, experts at Beresfords say overvaluing property is one issue that continues to undermine the progress of those looking to sell.…
Read More →
Rightmove logo
Breaking News

Rightmove launches next phase of AI-powered property search

Rightmove, the UK’s largest property platform, has launched a beta version of AI-powered conversational property search, as it continues to enhance its property search experience. In close collaboration with Google Cloud and built with Google’s Gemini models, conversational search is available via the property search bar on Rightmove’s website homepage. The latest move further expands…
Read More →
Breaking News

Should you break things off with your mortgage lender this Valentine’s Day?

As Valentine’s Day approaches, the latest research from award-winning mortgage adviser, Alexander Hall, has revealed that more than half of homeowners approaching the end of a fixed-rate mortgage are currently undecided on their relationship with their lender, despite notable improvements across the mortgage market over the last 12 months. The consumer insight, commissioned by Alexander…
Read More →
Breaking News

UK Finance Mortgage arrears and possessions Q4 2025

UK Finance today releases its latest mortgage arrears and possessions data for Q4 2025, while highlighting continuing lender support for any customers facing financial difficulty. Key Information The number of homeowner mortgages in arrears fell by four per cent in Q3 2025 compared to the previous quarter. The number of buy-to-let (BTL) mortgages in arrears…
Read More →
Breaking News

Property compliance experts urge landlords not to ignore major tenancy changes under Renters’ Rights Act

Beresfords property group highlights key actions landlords must take as new tenancy rules, enforcement powers and energy standards approach. UK landlords are being warned not to overlook major changes to tenancy agreements and compliance requirements, as the Government moves closer to implementing the Renters’ Rights Act 2025. Following the publication of draft secondary legislation, the…
Read More →