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

Fledgling homeowners cut costs by taking on fixer-uppers to achieve dream home

66% of first-time buyers bought a cheaper home because it needed DIY or renovation work done Many choosing a ‘fixer-upper’ were able to buy in their preferred location, add value and put their stamp on it DIY almost mandatory among first-time buyers, with 93% completing at least one project since moving in But three quarters…
Read More →
Breaking News

House Price Index for April 2026 – Thoughts from the Indutry

The latest Halifax House Price Index for April 2026 shows that: – On a monthly basis, house prices remained largely static, down by just -0.1% between March and April 2026. Annually, house prices were up 0.4%, albeit this rate of annual growth had slowed from 0.8% the previous month. As a result, the average house…
Read More →
Breaking News

House prices remained broadly stable in April

• House prices edged down -0.1% in April, following a -0.5% fall in March • Average property price now £299,313, compared with £299,609 in March • Annual growth slowed to +0.4%, from +0.8% in March • Northern Ireland continues to record the strongest annual growth at +7.6%   Amanda Bryden, Head of Mortgages, Halifax, said:…
Read More →
Breaking News

Breaking Property News 7/5/26

Daily bite-sized proptech and property news in partnership with Proptech-X.   The Hidden Economics of AI Agents: Why Businesses May Spend More Than They Ever Did on SaaS AI agents are rapidly being positioned as the next evolution of enterprise software. The problem is that many companies are still evaluating them through a SaaS lens…
Read More →
Estate Agent Talk

£15m property market accounts for 0.04% of all homes

The latest analysis from AgentWise has found that while more than 30,000 homes are currently for sale across Great Britain with an asking price between £1m and £5m, properties priced above £1m account for just 6% of all available housing stock, with the market becoming dramatically smaller and increasingly relationship-led as values rise. With so…
Read More →
Home and Living

Beware of the underinsurance risk created by property alterations

Property owners are being warned that while alterations may well improve a building, they can also change its rebuild cost. Where works materially affect a building’s size, layout, specification or services, the amount it is insured for may need to be reviewed, as a matter of urgency, according to experts at RebuildCostASSESSMENT.com “It’s a common…
Read More →