New Tenants’ Fees Bill announced in Queen’s Speech
Announced in last years Autumn Statement, a new Tenant’s Fees Bill has been confirmed in todays Queen Speech.
According to government figures, the average amount paid in fees is currently £223 with around 4.3m households paying such fees every year. However housing charity Shelter found that one in seven renters pay more than £500, with tenants in London complaining about fees of up to £2,000. Research by Citizens’ Advice also found that 42% of people paying letting agent’s fees had to borrow money to pay them.
This announcement comes after a recent TR UK twitter poll, where 62% of those polled thought that referencing should be exempt from the proposed Agent fee ban in England;
When the bill becomes law in England, landlords will have to find the money to pay for the likes of referencing, credit checks or investigating immigration status themselves.
It will also allow tenants to recover any fees that have been charged unlawfully.
Furthermore, the government have said that it will make the process more transparent, as renters are currently charged varying amounts.
A draft bill is set to be published “later this year”.
In England and Wales lettings and managing agents have been legally obliged to clearly publicise their fees since 2015. 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.
The question now is whether letting agents will seek to pass costs onto landlords? ? ?
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, we’re sure you’ll agree, £124 to advertise and let residential property, reference and even insure rent and legal costs is an amazing deal for all UK landlords.
This is also the perfect time for Landlords and Tenants to discover the power of the TR Referencing Passport. Renters can pre-reference themselves for the purposes of creating a ‘Tenant Passport’, to show any potential landlord or agent that they are financially secure, competent and have good references in order to gain access to better rented accommodation in the future.
For a flat fee of just £60 (per tenant) the TR Group Tenant Passport is valid for 90 days from issue (subject to no change in circumstance), and can be checked as authentic and validated by any UK landlord or agent directly with TenantReferencingUK.com
For full details on this please visit: http://www.landlordreferencing.co.uk/my-tenant-reference/