06 December 2017

UNITED KINGDOM: Landlords discouraged from using agents

As reported in ReloTalk in November a new bill has been published by the Government in the United Kingdom forbidding letting fees to be levied on tenants.

The bill was proposed to provide more security, transparency and stability for both tenants and landlords. However, according to a report from Paragon almost a third of landlords are now not sure whether they will use a letting agent in the fear that they will have to bear additional costs themselves after the ban.

The services that letting agents currently charge for include credit checks, checks on immigration status, referencing and drafting a proper tenancy agreement. These checks will still have to be performed, so even if landlords decide not to use letting agents then they should still perform these checks themselves. This might mean that the fees could get passed back on to the tenant again except in another form to account for the additional administrative burden that landlords will have to face.

How does this affect the client?

Initially the passing of the bill was thought to have a beneficial impact on employers with foreign nationals renting in the UK market. However, apart from a possible increase in fees for the tenant via the landlord there is also the potential that standards might decline since without the use of a letting agent and dedicated professionals to manage the property then the quality of properties might deteriorate.





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