The End of Tenant Fees – A new beginning
The 1st of June is just a week or so away now – for the Residential Lettings Industry in England, the 1st June 2019 is one of the most significant dates for some time.
From this date, under the Tenant Fees Act, residential tenants will no longer be able to be charged fees associated with their tenancy by an agent or landlord – a major change in the Lettings Industry! A breach of the fees ban will be a civil offence with a financial penalty of up to £5,000.
The effect of the tenant fee ban to Letting Agents
So what will the fee ban actually bring about in reality? Well, research commissioned by ARLA Propertymark illustrated that as a result of the fee ban tenants will pay on average an increased rent of £103 per year.
Residential lettings activity provides 58,000 jobs in England, which generate employee taxes in the order of £400 million for the economy each year. The Fees charged to tenants generate around £700 million per year or approximately 20% of the industry’s turnover. This monetary value is for real work carried out at a cost to the Letting Agent; these costs will need to be recouped somehow if the Letting Agent is to stay in business.
Some Agents have already raised their management fees to help recover their potential loss of revenue, or passed their tenant administration costs to their Landlords.
At HP Sales and Lettings we believe that this legislation SHOULD NOT impact on our Landlords financially, who are still not seeing the full impact of the BTL Tax (an upcoming blog post by us).
We are therefore delighted to announce that there will be no fee increase by HP Sales and Lettings as a result of the Tenant Fees Ban to any of our Clients from June 1st 2019.
HP Sales and Lettings deliver a hugely valuable service to our landlords and tenants, and we work extremely hard to ensure a tenant’s home is safe, legally compliant and professionally managed. If you would like to know more information regarding the Tenant Fees Act or anything else within the industry, please feel free to contact us on 0121 286 9007 or visit our Contact Us page.