Autumn Statement – Landlord Action & Accommodation for Students comment:

Paul Shamplina, Founder, Landlord Action

_Although there had been some whisperings, confirmation of this announcement will be a big shock to the industry. It is realistic to assume that the ban on letting agent fees to tenants, which will leave a black hole in agents_ profits, will need to be partly recuperated through letting and management fees.ÿ At the end of what has already been a tough year for landlords, and with uncertain times ahead, agents hiking up fees could be the final straw for some landlords and see them exit the private rented sector. Those that wish to hold onto their rental properties will have to increase rents in order to cover their costs.ÿ We could even see a surge of landlords opting to self-let and manage, which I believe will have a detrimental effect on rental property standards.

Agents will need to be forward-thinking about how they can absorb some of this cost and the loss through other areas of their business. It has never been more vital for agents to educate less experienced landlords on the importance and benefits of a managed service, making sure they are compliant with industry legislation and preventing them from exiting the PRS altogether._

Simon Thompson, Director, Accommodationforstudents.com

_With a recent report revealing the housing shortage in some university cities has driven rents up by as much as 10%, the scrapping of agent fees will be welcome news to students.ÿ Until now, students had no choice but to pay varying fees in order to secure the accommodation they want.

However, this could also have a negative effect on the rental market in the long term. It is likely that agents will be forced to increase landlord fees to cover their losses, which in turn will see landlords increase rents even further, negating any saving made to tenants in the first place.

Those landlords that typically choose to appoint an agent to manage their properties are usually either less experienced than self-managed landlords, or do not have the time to manage their properties. If more landlords choose to self-manage to save on letting agent fees, this could lead to a rise in poorly managed and maintained properties._

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

The biggest Halloween rent hikes

Revealed – Where tenants have been haunted by the biggest Halloween rent hikes The latest market analysis from London lettings and estate agent, Benham and Reeves, has revealed which areas of the rental market are haunting tenants this Halloween, having seen the largest increase in the average monthly cost of renting since this time last…
Read More
Breaking News

The UK’s anti-social behaviour hotspots revealed as Halloween looms

As Halloween looms, the latest research by over-50s property specialist, Regency Living, has revealed the nation’s most anti-social postcodes, based on the proportion of crime related to anti-social behaviour (ASB), with Ealing, Fylde, Westminster, West Lancashire and Chorley topping the table. Halloween may be a time for good-natured spooky fun, but for some, the fright…
Read More
Home and Living

77% of homeowners against Halloween

The latest research from eXp UK has revealed that while Halloween may be growing in popularity across the UK, many homeowners are planning to use smart home technology to avoid the endless stream of trick-or-treaters knocking at their doors this Friday. The survey of UK homeowners, commissioned by eXp UK, found that more than three…
Read More
Letting Agent Talk

What Leaseholder Reform Really Means for Managing Agents

By Robert Poole, Director – Block Management, Glide Property Management, part of LRG The past decade has seen a growing focus on leaseholder rights, and in the last few years, that focus has intensified into full-scale reform. With the Leasehold and Freehold Reform Act 2024 now enacted and further measures under consultation, managing agents are…
Read More
Breaking News

Mortgage approvals bounce back in September

The property industry’s reaction to the latest mortgage approval data from the Bank of England. The latest figures show that: – Mortgage approvals on house purchases for September sat at 65,944 up (+1.5%) from 64,963 in August. Approvals are up slightly (+0.5%) when compared to the 65,628 seen in September 2024. This increase shows stability…
Read More
Estate Agent Talk

E-E-A-T and Beyond: What Google Really Wants From Your Website Content

When it comes to ranking in Google search, content quality isn’t just about good writing or clever keywords anymore. Google’s algorithms have become far more sophisticated, prioritising expertise, experience, authority and trustworthiness, a concept now commonly referred to as E-E-A-T. Understanding and implementing E-E-A-T is essential for anyone who wants their website to perform well…
Read More