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

Crowded beaches - Clacton-on-Sea in Essex
Breaking News

1 in 7 consider moving home to manage cooling costs in hotter weather

Two in five adults (40 per cent) say they would prefer to invest in home improvements to reduce overheating from the outset, rather than rely on cooling devices Three in 10 (30 per cent) are concerned about the impact of using electricity for cooling on their energy bills, while over four in 10 (44 per…
Read More →
Breaking News

UK property fall-throughs cost estate agents estimated £2.8m every day

The latest research from GetAgent has found that property fall-throughs are costing UK estate agents an estimated £2.8m per day in delayed or lost commission income, highlighting the substantial financial impact that failed transactions continue to have across the industry. The research analysed residential property transactions that fell through during May 2026, alongside average regional…
Read More →
Breaking News

Where are the UK’s most Instagrammable streets?

· New research from Lloyds reveals the most popular streets on Instagram and TikTok · Bath’s Royal Crescent tops the list, where average house prices are £590,786 · London, Edinburgh, Bristol, Cardiff and Manchester all feature in the top 20 · From £1.66m in Notting Hill to £158,559 near Loch Lomond – picture-perfect streets feature…
Read More →
to let sign 2025
Letting Agent Talk

Northern Ireland emerging as one of the UK’s most attractive long-term rental investments

Northern Ireland rents have increased by approximately 51% over the past five years Tenant enquiries have risen by approximately 33%, highlighting continued demand for quality rental accommodation. Four of the five fastest-growing housing markets in the UK are located in Northern Ireland 26% of landlords in England sold at least one rental property during 2024,…
Read More →
Estate Agent Talk

Homebuyers demand same-day conveyancing updates

New research from Lyons Bowe solicitors reveals that Britain’s homebuyers have little tolerance for poor communication during the conveyancing process, with buyers increasingly expecting same-day updates, prompt responses, and swift notification of any issues that could impact their purchase. The survey of current and recent homebuyers who have purchased a property within the last two years,…
Read More →
Breaking News

Breaking Property News 25/6/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   Detecting property moisture defects without invasive or damaging procedures BEST Training, a specialist CPD provider for the built environment, has now launched Module 2 of its advanced course series: Investigating Moisture in Traditional Buildings. The module offers an end-to-end diagnostic curriculum for professionals working…
Read More →