8 November 2017

UNITED KINGDOM: Bill to ban letting fees finally published

A new bill has been published by the Government in the United Kingdom forbidding letting fees to be levied on tenants.

Historically letting fees are fees imposed by letting agents on landlords for their services however these fees are nearly always passed on to the tenant resulting in increased costs they have to pay up front to rent a property.

The bill will still have to be passed in Parliament before it actually comes into force but it will ensure that moving forward the letting fees are the responsibility of the landlord to pay and not the tenant.

Going even further the Government will also impose a fine if the ban is not adhered to; an initial breach of the ban with mean a civil offence will be created with a fine of £5,000 and a criminal offence will be created if the same agent has been fined or convicted of the same offence in the past 5 years.

The UK Government also wants to demand compulsory membership for all letting and management agents that handle client money to a client money protection scheme as currently this is not mandatory.

A full draft of the bill can be found here.

How does this affect the client?

This new development has the potential to reduce housing costs for employers and their foreign nationals who are renting in the UK market.



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