Tenancy deposit reform 'unavoidably on the agenda'

Tenancy deposit reform 'unavoidably on the agenda'
It is not a case of whether Letting Agent fees are going to be banned but how the ban will be implemented

Property campaigner, Ajay Jagota, has warned the property industry to stop “living in complete and utter denial” about the coming ban on Letting Agent Fees – with such a ban promised by all three major parties.

The publication of the Conservative’s manifesto means that they, Labour and the Liberal Democrats have now all published their election promises for the private rented sector

These are as follows:

Conservatives: Confirmation that they will continue with the letting agent fee ban and a commitment to “improve protections for those who rent, including by looking at how we increase security for good tenants and encouraging landlords to offer longer tenancies as standard”

Labour: Establishment of a “Department of Housing” tasked with improving the “number, standards and affordability of homes”, make three-year tenancies the norm, cap rent rises in line with inflation, ban letting agency fees, give renters “new consumer rights”, introduce new standards to ensure properties are “fit for human habitation”.

Liberal Democrats: Mandatory landlord licensing, three-year tenancies, inflation-linked rent increases and a cap on upfront tenancy deposits.  


Ajay is founder of Protech Deposit replacement insurance solution Dlighted and sales and lettings firm KIS and had this to say: “The Letting Agent fee ban is the latest in a long line of things the industry believed would never happen until they did. If it wasn’t obvious enough, the manifestos we’ve seen this week make it clear those people need to stop living in complete and utter denial.

It is not a case of whether Letting Agent fees are going to be banned but how the ban will be implemented. It’s not even a case of when the ban comes as legislating for it is likely to be low hanging fruit compared to other pledges on housing so I’d expect to see it in the first Queen’s Speech of whatever government we have after June 8.  

All three manifestoes are, however, very light on detail when it comes to the form the ban will take. Do they mean an outright ban of any kind of fee being charged to tenants or will things like referencing fees be exempt? It’s over these issues that the industry now needs to mobilise.

The most significant pledge on renting of any of the parties is the Liberal Democrats deposit cap. It’s not a policy I agree with, but its very existence means that deposit reform is now unavoidably on the agenda.

I can already hear some people saying ‘it’ll never happen’, to which I say this: Two years ago Labour plans to ban letting agent fees were roundly mocked by the Conservatives. Today it’s unthinkable that the Conservatives will go back on banning them. Like it or not, deposit reform has arrived.”

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
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Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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IrisJ.
IrisJ. 19 Jul 2017

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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