Yorkshire letting agents propose an alternative to the letting fee ban
A number of letting agents in Yorkshire have suggested an alternative to the government’s proposed letting fee ban. They have suggested putting a levy on each rental transaction with the proceeds to be donated to homeless charities and social care agencies.
The proposal was submitted to the Department of Communities and Local Government as part of the formal consultation on the government’s plan to ban tenant fees in England.
The document composed,by a group of Yorkshire agencies, was organised by Will Linley of Linley & Simpson, Jonathan Morgan of Morgans, and David Waterhouse from Angus Roberts agency.
The paper details figures on the costs of operating buy to let properties and makes a good case against the proposed ban, questioning the belief that landlords can absorb the charges in place of tenants.
The Yorkshire agents believe their unspecified mandatory levy is a “revolutionary move” which could recoup £50m per annum. They have suggested it could be linked to the overall rent and would include a cap on increases to charges that are still levied on tenants.
According to the agents, the proceeds from the levy “would provide charities and health agencies with an injection of new funding that would innovatively tackle both acute and long term problems of homelessness, pay for the long-awaited regulation of the lettings industry to drive up standards and clear it of rogue operators, and equip researchers with the resources to explore viable solutions to the looming wider housing crisis”.
They concluded by saying: “this response has drawn upon the insight and expertise of letting agents across Yorkshire. It is very much work in progress but we believe it makes a compelling case for considering a different, better, approach”.
The Yorkshire agents have invited the Department for Communities and Local Government to meet with them to discuss their proposal in more detail.
Full article available on LettingAgentTODAY: https://www.lettingagenttoday.co.uk/breaking-news/2017/6/fees-ban–regional-letting-agents-propose-radical-alternative-levy