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Ban on agent fees will impact negatively on 20% of landlords
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The Housing Minister Gavin Barwell has moved to state the proposed ban on letting agents levying fees on tenants will only negatively impact 20% of tenants.
An ARLA report from the meeting of the All Party Parliamentary Group for the Private Rented Sector earlier this month says that Barwell disputed the notion that the ban would be universally costly for landlords and tenants alike.
Financially Impacted
Mr Barwell told MP’s that while the implications of scrapping fees does need to be assessed, early HMRC forecasts suggest that just a fifth of investors will be hurt financially.
In addition, the report states: ‘Barwell also said that since the change will be phased in it will not have as large an effect. In response to concerns that landlords will have to up their rent to cover the costs of the fees, Barwell said that it is of course up to the discretion of the landlord to decide their fees. He said the government see the measure part of as creating a fair tax regime. He said the forthcoming consultation will not look at the value of the measure but will look at how it is implemented.’[1]
What’s more, Mr Barwell is reported to have stated that Build To Rent would feature in the Government’s White Paper on Housing. Barwell sees Build To Rent as good value for money and believes that the scheme offers longer tenancies-one of his key objectives.
Ban on agent fees will impact negatively on 20% of landlords
Changes
After the meeting, managing director of ARLA David Cox, observed it was clear that the Government is trying to implement large scale changes to the private rental sector in England.
Cox noted: ‘Since the 1980s, England has been building up to 40 per cent fewer homes than the 240,000 needed annually. The resulting shortage of about two million homes has left the country with soaring prices and a growing gulf between the property haves and have-nots.’[1]
‘Unfortunately, the government doesn’t seem to realise that punishing hard-working letting agents who deliver a hugely valuable service will not in the long run improve the affordability of the sector and the service that tenants receive.’[1]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/1/letting-fees-ban-will-only-hit-20-negatively-claims-minister
