A crackdown on fees was announced in this week’s Queen’s Speech and would mean tenants would no longer have to pay for credit checks, taking references and confirming immigration statuses. Tony McDonough reports
Liverpool property firm boss Helen Griffin-Booth is warning that Government plans to ban lettings agency fees could lead to higher rents for tenants.
A crackdown on fees was announced in this week’s Queen’s Speech and would mean tenants would no longer have to pay for credit checks, taking references and confirming immigration statuses.
Instead, landlords will be asked to take on these costs.
Ms Griffin-Booth, director at sales, lettings and investment agency Bluerow Homes, first raised concerns when the plan was announced in the Autumn Statement.
She said: “With plans to ban lettings agency fees included in most party manifestos prior to the election, it is no surprise that the plans are now moving forward.
“It is great to see efforts made by the government to protect tenants against rogue letting agents, particularly in areas like London, who are charging extortionate fees.
“However, I am concerned that tenants will fail to save money as a result of the ban.
“By passing the costs onto landlords they will ultimately be shifted to tenants by hiking up rents.
“Adding extra costs to landlords will only make buy-to-let investment less attractive thus decreasing the housing stock available within the private rented sector.
“With a draft bill planned for later this year, I hope to see a measure included to ensure that tenants can truly see the benefits of a ban to lettings agency fees.”