Tenant Fees Ban: Landlords Will Absorb Extra Costs
Posted on 01/02/2019 by Sulgrave Estates
The Tenant Fee ban is great news for tenants. Housing Minister, Heather Wheeler MP, said that, “The new measures in our Tenant Fees Bill will save renters around £240 million a year by banning unfair letting fees and capping tenancy deposits.” That’s a considerable sum of money.
The question many agents are still asking is how will the costs of setting up a tenancy be covered? Most assume that landlords will raise rents to balance their books.
However, Lisa Simon, Head of Residential at Carter Jonas, says “With a start date for the tenant fee ban now in place, questions have inevitably resurfaced as to how this imminent change in legislation will impact both landlords and tenants.
Relieving tenants of some of the upfront costs associated with the start of a tenancy will mean that charges such as referencing will, inevitably, divert to landlords. Having said that, the long wait for news of when the ban will come into force has allowed landlords time to reflect and prepare for any absorption of costs.”