Property industry must get behind 'fee cap' idea

Letting agents and landlords must club together to campaign for a cap on letting agents' fees charged to tenants, rather than an outright ban.

Related topics:  Landlords
Warren Lewis
15th December 2016
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This is the message from the Association of Independent Inventory Clerks (AIIC) in response to the Autumn Statement, in which Chancellor Philip Hammond announced that letting agents in England will no longer be able to charge tenants.
 
It's been well-documented that many in the property industry believe that banning fees charged to tenants will only serve to increase rents as agents will merely pass the additional costs on to landlords.
 
Research recently compiled by Spicerhaart predicts that tenants paying a monthly rent of £1,000 could end up shelling out an additional £900 over the course of an average tenancy if landlords increase expected payments by just 3%.
 
There have been numerous calls for a cap on fees as a fair solution to the problem. This has culminated in the creation of the Fair Fees Forum.

Spearheaded by the National Approved Letting Scheme, the Fair Fees Forum is seeking to have an active role in the Government's consultation on banning tenant fees, as well as organising a meeting with Housing Minister Gavin Barwell MP.
 
The AIIC agrees that a cap would represent a fairer way of limiting agents' fees charged to tenants.
 
Patricia Barber, chair of the AIIC, had this to say: "We're obviously extremely disappointed with the outcome of the recent Autumn Statement, especially at a time when the rental sector has come under such frequent attack from the Government."
 
However, now is not the time to feel sorry for ourselves and shy away - we must stand up, be counted and engage in constructive dialogue with the stakeholders that matter," she adds.
 
Barber praises the work being carried out by the Fair Fees Forum and has urged all letting agents and landlords to be as vocal and engaged as they possibly can.
 
It is expected that a ban on fees will be introduced within the next 12-18 months, following a Government consultation period in the New Year.
 

Barber explained: "The next few weeks and months are set to be an extremely crucial period in the make-up of this proposed ban. Rather than complaining about what we consider to be a gross injustice, it will be far more productive if the industry clubs together to explain possible solutions to this problem, the benefits of a cap and possible implications of a blanket ban."
 
Here at the AIIC, we find it hard to understand why tenants should be serviced with hours of letting agents' time while benefitting from referencing and inventories - all for free. Hopefully, with the aid of some thoughtful lobbying by the property industry, the Government will think carefully about its next move regarding letting agents’ fees."

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