HAMMOND’S RENTAL BOOMERANG: INDUSTRY BODIES RESPOND TO BAN ON LETTING AGENT FEES

November 24, 2016

Commenting on the Autumn Statement, Richard Lambert, Chief Executive Officer at the National Landlords Association (NLA), said:

_The new Chancellor is clearly aware of the pressures facing those living in the private-rented sector, but in attempting to improve affordability he has shown that, like his predecessor, he lacks an understanding of how the whole sector works.

_There_s no doubt that some unscrupulous agents have got away with excessive fees and double-charging landlords and tenants for far too long.ÿ Banning letting agent fees will be welcomed by private tenants, at least in the short-term, because they won_t realise that it will boomerang back on them.

_Agents will have no other option than to shift the fees on to landlords, which many will argue is more appropriate, since the landlord employs the agent.ÿ But adding to landlords_ costs, on top of restricting their ability to deduct their business costs from their taxable income, will only push more towards increasing rents_.

 

Richard Price, Executive Director at the UK Association of Letting Agents (UKALA) said:

_Arbitrary bans sound appealing as a quick fix, but the problem of affordability in the private-rented cannot be addressed by preventing legitimate businesses from charging for their services.

_A ban on agent fees may prevent tenants from receiving a bill at the start of the tenancy, but the unavoidable outcome will be an increase in the proportion of costs which will be met by landlords, which in turn will be passed on to tenants through higher rents.

_UKALA agents strive to provide a premium service which represents excellent value for money and this ban will place in jeopardy hundreds of professional businesses in order to deal with the few unscrupulous_.

For further information, please contact:

Sam Haidar
PR Manager, NLA/ UKALA

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

Mansion tax would hit London hardest

Mansion tax would hit London hardest, as capital accounts for 66% of all homes sold above £2m so far this year The latest data insight from Enness Global has revealed that, should the Chancellor introduce a 1% annual mansion tax on properties valued over £2 million, the measure would overwhelmingly target London homeowners, with two-thirds…
Read More →
Breaking News

Share of first-time buyers opting for low-deposit deals rose 8.6% in October

Barclays mortgage data shows deposits under £20,000 made up 22.1 per cent of first-time buyer completions in October 60 per cent of renters say they would require financial incentives or homebuying support schemes to get onto the property ladder Confidence in the housing market dipped three percentage points to 24 per cent month-on-month, although sentiment…
Read More →
Rightmove logo
Breaking News

Nearly one in five potential movers waiting for Budget before resuming plans

A new Rightmove study of over 10,000 potential movers looks at how Budget speculation is affecting decisions Nearly one in five (17%) potential movers said they have paused their plans due to uncertainty about changes to property taxes in the upcoming Budget The majority (61%) of potential movers surveyed said they were aware of rumours…
Read More →
Breaking News

Latest ONS Private Rent and House Prices Index

Average UK monthly private rents increased by 5.0%, to £1,360, in the 12 months to October 2025 (provisional estimate); this annual growth rate is down from 5.5% in the 12 months to September 2025. Average rents increased to £1,416 (5.0%) in England, £817 (6.7%) in Wales and £1,008 (3.4%) in Scotland, in the 12 months…
Read More →
Estate Agent Talk

Winter property checklist: How to protect your home this season

As temperatures drop and winter approaches, Propertymark, the leading professional body for estate and letting agents, is urging homeowners and tenants to prepare their homes for the colder months with a few simple maintenance checks that can prevent costly damage and ensure safety and comfort throughout the season. According to Propertymark, winter is one of…
Read More →
Breaking News

London homebuyers have paid nearly £25bn in Stamp Duty over the last decade

The latest research from Jefferies London shows that, as many await news of potential Stamp Duty reform in the upcoming Autumn Budget, homebuyers across the capital have collectively paid almost £25bn (£24.9bn) in Stamp Duty over the last ten years, with buyers in prime central London contributing the largest share by a considerable margin. Jefferies…
Read More →