Autumn Statement 2016: New era for Landlords as Lettings agent fees to be banned
Lettings agents are set to be banned from charging fees to tenants under plans to be announced by the chancellor in his Autumn Statement, from 12:30pm today.
Tenants can be charged fees for a range of administration, including reference, credit and immigration checks.
Philip Hammond is expected to say that shifting the cost to landlords will save 4.3 million households hundreds of pounds.
The move could spur competition as landlords, unlike tenants, can shop around for the cheapest agent.
In Scotland, lettings agency fees to tenants have already been banned.
In England and Wales lettings and managing agents have been legally obliged to clearly publicise their fees since last year. So as a landlord in England, Wales or Northern Ireland you will know all about the fees your tenants have to pay when they sign a rental contract with a letting agent.
This means that tenants can be charged anything to check-in or check-out when moving, which is why Scotland were the first to abolish these fees and now the government is following suit.
The question now is whether letting agents will seek to pass costs onto landlords, which coupled with various tax changes, including the scrapping of mortgage interest relief from April 2017, would make it even harder for buy-to-let investors to make a profit.
Many news sources are reporting this as ‘bad new for landlords’, however we believe there is a positive spin
on this. Primarily, this is the perfect opportunity for landlords to become accredited and learn how to
efficiently self-manage their properties to keep their costs (and rents) down.
So £124 (+ VAT – special TR Group Christmas offer for 2016) to advertise and let rented property, reference and even insure rent and legal costs are covered is an amazing deal for all UK landlords, wouldn’t you agree?
At the TR Group it has been our mission to create the best products at the best price over the years, to help our member landlords meet their costs as well as their legal obligations.
So landlords, if you’re looking to give your tenants the best deal and prepare for another drastic change to the private rented sector join LandlordReferencing.co.uk today for all your Referencing & Insurance needs.
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