Letting Agent Fees - when are they being abolished?

ktharmer

Hi all,

The Autumn Statement 2016 indicated that letting agent fees would be abolished for people in the rental market.

As far as I can see, this has not been implemented. I also can't find anything online to suggest any date in the future where this abolition will be enforced.

As someone on the rental market, looking to move in with my partner but unable to due to the extortionate fees at the moment, you can understand my frustration that this positive proposal from the Autumn Statement seems to have been swept under the carpet and forgotten about.

Any info much appreciated.

Katie

anselld

It is a consultation. Implementation has already been kicked into 2018.

agrinnall

Move to Scotland.

smile88egc

Write a letter of complaint to your local MP. I'm in a similar situation to you and having to move house more than 8 times in my adult life so far (I'm 28!) for university and work, I feel your pain!

I feel the Autumn statement very much misrepresented the conservatives intentions regarding letting agents fees, and tenants (and then rental market and wider economy) continue to suffer.

theartfullodger

agrinnall wrote: »

Move to Scotland.

(Where fees have been unlawful since at least 1984...)

Who knows?? Some might think that the government has more important issues to worry about (EU, BrokeIt), but Mother T doesn't seem to have a clue right now...

dekaspace

theartfullodger wrote: »

(Where fees have been unlawful since at least 1984...)

Who knows?? Some might think that the government has more important issues to worry about (EU, BrokeIt), but Mother T doesn't seem to have a clue right now...

Still get charged though but they attempt things like "oh its not us thats charging you, its a third party"

I remember a agency a few years ago, the same one that kept claiming I was a bad tenant every 6 months asking if I wanted to stay longer and if I said yes send me new contract and attempt to charge £100 in fees (which I never signed contract or paid the fees) or another that wanted £100 referencing fees only 2 years ago.

steampowered

It takes a bit longer than a few months to pass laws I'm afraid. Otherwise laws would be full of loopholes.

My understanding is that the Department for Communities and Local Government is likely to put a proposal out for consultation reasonably soon. I imagine the DCLG will propose how the ban will work and invite proposals from interested parties. If primary legislation is required, the legislation would then need to be debated and approved or amended by parliament. A date for implementation will not be available until the legislation is actually passed.

Before that's all said and done it is realistically going to be at least a year or two before the ban actually gets implemented.

csgohan4

when it's implemented, who do you think will pay for the shortfall for the Estate agents???

agrinnall

dekaspace wrote: »

Still get charged though but they attempt things like "oh its not us thats charging you, its a third party"

I remember a agency a few years ago, the same one that kept claiming I was a bad tenant every 6 months asking if I wanted to stay longer and if I said yes send me new contract and attempt to charge £100 in fees (which I never signed contract or paid the fees) or another that wanted £100 referencing fees only 2 years ago.

So why didn't you report them? If you let them get away with it then how do you think it will stop? Do nothing and you become part of the problem.

martindow

csgohan4 wrote: »

when it's implemented, who do you think will pay for the shortfall for the Estate agents???

They'll charge the landlords. The difference is that at the moment tenants have to pay fees and can't shop around. If and when the new system comes in LLs will be able to choose agents and Ts will no longer be fleeced. With a bit of competition agents will not be able to pile much extra onto the fees.

I believe when it was introduced in Scotland, fees and rents didn't jump up very much. Perhaps some Scots can comment on this.

steampowered

csgohan4 wrote: »

when it's implemented, who do you think will pay for the shortfall for the Estate agents???

I think most of it will be absorbed by the letting agents themselves. Landlords might be charged a fee for some services but they won't tolerate fees which take the mick.

At the moment the letting agents are quite inefficient. Financial information for the large publicly listed agents (like Foxtons) is publicly available.

Foxton's operating margin last year (i.e. the profit made on sales) was 22%. This is extremely high. It is much higher than that of pretty much any other high street business. There's a lot of fat in the system.

To give you a comparison, Tesco's operating margin last year was 1.7%, and the typical operating margin for high street clothes retailers and coffee shops is about 5-10%. Professional services businesses like law firms make about 20%. For Bookies, William Hill's margin was 15.5%.