New Rules Regarding Letting Agent Fees

Chancellor Philip Hammond announced in his Autumn Statement that tenants in England and Wales will no longer be responsible for paying letting agents’ fees and that these fees must be passed on to landlords. The Chancellor said, ”We have seen these fees rise, despite our attempts to regulate them. Landlords appoint the agents, so landlords should pay for them and this will be done as soon as possible.”

These changes are estimated to affect 4.3 million households across the country and are likely to cause landlords in England and Wales to increase the rents they charge to tenants. This is exactly what happened in Scotland when letting agents were banned from charging tenants upfront fees back in 2012. In Scotland there has been no reduction in the demand for the various Inventory Report stages because these reports are absolutely essential in order to fairly apportion liabilities between landlords and tenants at the end of the tenancies.

So the important point to understand is that both private landlords, and the letting agents who manage landlord’s properties, will continue to use the services of Inventory Clerks to compile the different Inventory Reports. As has always been the case, these documents provide the essential legal evidence required to resolve the inevitable disputes between landlords and tenants that can and do occur at the end of tenancies.

If you have any questions regarding Chancellor Philip Hammond’s statement on the ban of letting agents fees for tenants, then please do not hesitate to give us a call. It’s OK to call Stephen or Janette in the evening or any time over the weekend. T: 01483 370660 M: 07778 584440.

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