MSE News: Plans to ban letting agent fees unveiled

phillw

zerog wrote: »

So then why haven't the landlords already increased the rent, if it wouldn't stop people from renting?

Some landlords are nice people & some are too lazy to up the rent. If you're really rich then shoving an extra £50 a month on the rent is not even worth your time.

Murphybear wrote: »

Here in the rural south west I have seen many properties on Rightmove where rents are reduced. Make of this what you will, but one reason is probably that they are overpriced.

I know of examples in the south east too. There are new houses and flats being built here so rapidly that it's outstripping demand. If that continues then it's going to be a real problem.

Guest101

At the end of the day, Miss S has a point. If you want to rent this property, currently, this is the cost. If you don't like it, don't rent it. No different to asking why an iPhone costs £400 in one shop, but £500 in the next, and what the true cost is.

parkrunner

zerog wrote: »

So then why haven't the landlords already increased the rent, if it wouldn't stop people from renting?

Rents are increasing.

https://www.theguardian.com/business/2017/feb/09/uk-rents-rise-faster-house-prices-next-five-years-rics-survey

https://www.theguardian.com/money/2016/sep/09/home-rents-rose-to-an-all-time-high-in-july

Marktheshark

Rental income is at best 15% PA.
About what the agent skims off without your £200,000 investment.

You invest, they take all and often more of the profit, if you can not self manage, don't get involved, you will lose money.

saajan_12

Banning fees charged to tenants would likely mean these are passed on to LLs who increase rents. Indeed, rents are set by the market not LLs, but currently the market can bear tenants paying an average annual X rent + Y fees, so it would bear (X+Y) rent. LLs currently receive X, and would continue to receive (X+Y) rent - Y extra fees paid to LA on top of what they already pay.

The total average cost to tenants would be the same, but there are benefits to banning fees.
* Cost is spread over duration of tenancy rather than concentrated at the same time tenants are facing moving costs, deposits etc which can make it impossible to move for those who find saving hard

* Increases transparency of the cost of a property being X rent which is easy to compare and encourages rents to stay competitive rather than a smaller rent of Y + abc hidden fees which often aren't clear until you've committed some money.