Tenant Fee Ban To Level Playing Field Say Scarborough Estate Agent
Scarborough Estate Agent, Ellis Hay, say tenant fee ban, set to commence 1st June, will level the playing field.
From June 1st tenant letting fees will be banned in England across the private rented sector. This is known as the Tenant Fees Act 2019. This means admin fees previously charged to set up or renew a tenancy for homes will no longer apply from this date onwards. Philip Hay, Head of Lettings of Ellis Hay on Aberdeen Walk predicts that this will positively affect the rental market. Hay comments: “The fee ban should ‘level the playing field’ between private landlords, who usually don’t charge fees, and agents. This means in the coming months, there should be a bigger pool of available properties for tenants to consider”.
Samantha Hay, Partner at Ellis Hay adds: “In order to simultaneously benefit both tenants and landlords, all parties must comply with the correct procedures and as a result, landlords will continue to see a fair return on their business. Whilst tenants, who may not have previously been able to afford agency fees, have the option to enter into a tenancy.” Fees exempt from the ban include and are not limited to rent, a refundable holding deposit capped at one weeks rent and charges for defaulting on the contract.
The estate agent has announced that tenant demand is high, with most properties letting in 3-4 weeks between 2018 and 2019. “There is a clear need for properties to be put on the market. However, landlords are unsure about how the tenant fee ban might affect their business” Philip Hay comments.
Hay adds: “With correct and proper advice on this and future changes in legislation from letting agents, landlords should not have anything to fear. Unlike some of the national chains and city agencies we have always charged a fair amount for application fees so this does not come as too much of a loss; we will be able to carry on offering the same level of service without passing on excessive costs to the landlord.”
Gov.uk propose “The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy, and is part of a wider package of measures aimed at rebalancing the relationship between tenants and landlords to deliver a fairer, good quality and more affordable private rented sector”.