Letting fees have hit the headlines recently. And for good reason. They are horrible for everyone involved – except for the estate agents who enforce them. An easy way to make a quick buck, they leave tenants out of pocket and can cause frustration for landlords who lose prospective tenants because of it. However soon, thanks to the new chancellor, these look likely to become a thing of the past.
Millions of families, couples and individuals are currently subject to these somewhat hidden fees every single year. We’re referring to them as ‘hidden’ as many do not know what they are – unless they have borne the brunt of them themselves. Often landlords who choose the estate agents have no idea what they are for and how much agents charge. And to a certain degree, the same can be said for tenants. Used to ‘cover fees’ these demands, which can stretch into the hundreds, are advertised to pay for checks, including inventories. But as we have known for a long time at I Am The Agent, there is no need for these fees and estate agents can thrive without putting unnecessary costs onto tenants who may already be feeling the pinch.
This announcement came in the Autumn Statement, the first by the new Chancellor, Phillip Hammond. And among a number of topics, one of the most prominent was the housing market and dealing with the challenges ahead. A lot of pressure has been put on the government to do something about the lack of affordable housing, and the Chancellor responded to this by pledging a £1.4bn investment, as a response to Theresa May’s promise to help families who are “just about managing”.
This boost for housing is in addition to a fund, currently standing at £4.7bn, which is expected to help build 40,000 new homes. These new homeswillthen allow providers more flexibility to offer people lower rents. Set to be built over the coming years, they may offer light at the end of the tunnel for those feeling downhearted by rising rents.
The ban on letting fees, which looks likely to come into play after a consultation, will likely be implemented sooner rather than later. And seeing as many have celebrated the announcement, it looks like an almost certainty that tenant fees will be a thing of the past sooner rather than later.
At I Am The Agent, we don’t believe in tenant fees; we simply believe in matching people to their dream homes – whether it’s rented or purchased. Not only that, but we are the cheapest online estate agent, with fees starting from just £19 for landlords looking to rent a property. Discover more about our renting service that lets you keep control.
