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

Rightmove logo
Breaking News

Highest ever price gap between first-time buyer and second-stepper home

Latest Rightmove data shows that the price gap between a typical first-time buyer home and a second-stepper home is at its highest ever, increasing cost pressures on those looking to trade up: The average asking price for a 3-4 bedroom, typical mid-market second-stepper home is 52% more than a 0-2 bedroom, typical first-time buyer home…
Read More →
Estate Agent Talk

Mortgage Rates and Human Behaviour: Why Small Changes Create Big Reactions

By Sarah Thompson, Group Financial Services Director, Mortgage Scout Mortgage rates have returned to the headlines in recent weeks, with some lenders pushing products back above 5%. Renewed market volatility has been driven in part by global uncertainty, including the conflict in the Middle East and its impact on energy markets and investor confidence. Yet…
Read More →
Breaking News

Nearly six in ten UK property purchases trigger AML red flags

Nearly six in ten UK property purchases now require further scrutiny under anti-money laundering (AML) rules, according to new data from client due diligence platform Thirdfort. Analysis of more than 415,000 completed Source of Funds (SoF) checks found that 57.7% of transactions contained at least one red flag, with an average of two flags per…
Read More →
Breaking News

Vanishing act of sub-4% fixed rate mortgages

A cut to Bank of England Base Rate (BBR) looks increasingly unlikely, with the upheaval in mortgage re-pricing leading to a vanishing act of sub-4% fixed mortgages, according to Moneyfactscompare.co.uk analysis. Mortgage market analysis The pool of lenders offering a sub-4% fixed rate deal has taken a significant blow. All of the biggest banks, namely…
Read More →
Estate Agent Talk

Government’s Home Buying and Selling Reform

Will the Government’s Home Buying and Selling Reform Consultation Increase or decrease the speed at which the market moves? Kevin Shaw, National Sales Managing Director, LRG The government’s consultation on Home Buying and Selling Reform is a step in the right direction. It recognises what every estate agent and conveyancer already knows: property sales take…
Read More →
Letting Agent Talk

The Draft Leasehold and Commonhold Reform Bill

Content and clarification Comment from the Association of Leasehold Enfranchisement Practitioners (ALEP) By Shabnam Ali-Khan – Partner, Russell-Cooke Following the rushed Royal Assent of the Leasehold and Freehold Reform Act 2024, further controversy has arisen. In the King’s Speech on 17 July, the new Leasehold and Commonhold Reform Bill was announced, but the full details…
Read More →