Will fees still be allowed on existing tenancies?

motoko

Having just moved house and paid £395 in letting agent fees, I was pleased to see the draft bill for banning these fees is finally starting to make its way through parliament.

Although it's coming a bit late to save us any money this time around, I thought we'd at least avoid the £120 renewal fee next year, and also the £100-£180 inventory check fee at the end of the tenancy (which is a new one on me).

But no such luck, if I'm reading this right it seems the ban will only apply to new tenancies started after it comes into force, not existing tenancies, which will continue be have renewal fees applied, thanks to 'clause 22':

22 Transitional provision

(1) Section 1 (prohibitions applying to landlords) does not apply to a requirement which was imposed, or which forms part of a tenancy agreement which was entered into, before the coming into force of that section.

(2) Section 2 (prohibitions applying to letting agents) does not apply to a requirement which was imposed, or which forms part of an agreement between the letting agent and the tenant which was entered into, before the coming into force of that section.

Can anyone confirm if this is the case? If so I'm really hoping this clause gets edited out of the final version. Seems crazy to write a loophole like this into the bill.

theartfullodger

You don't have to pay any renewal fee. Simply continue periodic,no landlord with half a brain would evict an excellent tenant. However not all landlords have that much grey matter. (I'm one...)

Until we see the final text Lizzie Windsor signs off we don't know

Gwendo40

They're certainly taking their time getting this bill through parliament.. at least when it finally does get through the agents won't be able to whine about not having enough notice about their lettings fees gravy train finally coming to an end.

I wonder when the agents can no longer rely on getting the bulk of their income from lettings fees if they'll start to actually encourage vendors to price houses realistically to sell, rather than indulging all the greedy, deluded, time wasting kite flyers that currently make up the majority of people putting their houses on the market.

theartfullodger

Such fees have arguably been unlawful in Scotland since 1984: Come on Engerland, catch up!

G_M

theartfullodger wrote: »

You don't have to pay any renewal fee. Simply continue periodic,no landlord with half a brain would evict an excellent tenant. However not all landlords have that much grey matter. (I'm one...)

See

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

Cakeguts

What I would like to know is what letting agents in Scotland do about time wasters. People who apply to rent numerous houses but keep changing their minds?