MP issues warning over unintended consequences of letting fees ban
Tory MP, Mike Freer, has warned that the lettings fee ban in England will cut agent turnover by 20%. He made his claim after consulting with agents in his constituency of Finchley and Golders Green in North London. To counteract reduction in income from tenant fees, agents are likely to increase charges to landlords, who in turn will raise rents to cover increased costs.
Freer also argues that holding deposits should not be treated as fees, as it could result in many tenants committing to multiple properties when searching for a home in the hope of securing one of them. This will also increase costs for agents and landlords who may end up out of pocket for referencing checks for each prospective tenant, only for them to choose another property.
Full story available from The Negotiator: https://thenegotiator.co.uk/mp-predicts-ban-will-cut-letting-agent-turnover-20/