What does the Autumn Statement mean for renters?

Debbie Turner, Head of Lettings at DOMVS says 'it seems yet again that little thought has been given to the true effects banning agents from charging fees to tenants will have, as echoed by David Cox, MD of the Association of Residential Letting Agents (ARLA) who says, and I quote, “A ban on letting agent fees is a draconian measure, and will have a profoundly negative impact on the rental market. It will be the fourth assault on the sector in just over a year, and do little to help cash-poor renters save enough to get on the housing ladder. This decision is a crowd-pleaser, which will not help renters in the long-term. All of the implications need to be taken into account.
 
Most letting agents do not profit from fees. Our research shows that the average fee charged by ARLA Licenced agents is £202 per tenant, which we think is fair, reasonable and far from exploitative for the service tenants receive. 
 
These costs enable agents to carry out various critical checks on tenants before letting a property. If fees are banned, these costs will be passed on to landlords, who will need to recoup the costs elsewhere, inevitably through higher rents. The banning of fees will end up hurting the most, the very people the government intends on helping the most.”

Sam: 24th Nov 2016 10:44:00