Letting agents hit back to deny ‘bidding wars’ claims
Propertymark says agents have "absolutely nothing to do with bidding wars", after a major London council called on them to end the "unethical practice".
Lettinga agents have hit back at suggestions this week that they are responsible for tenant ‘bidding wars’ for rental properties.
This follows a call from Southwark Council in London for an immediate ban on “unethical business practices” by some letting agents, which it says are driving rents ever higher.
The council is planning to contact property firms in the area that have not agreed to end the “exploitative” practice.
This can often be tenant-led.”
But now Nathan Emerson, CEO of Propertymark, says: “There are cases of landlords and agents accepting astronomical rent offers on properties, however, this can often be tenant-led.
“Most professional and ethical agents will be working to ensure a happy balance is struck between both landlords and tenants to keep people in long-term, secure and safe homes although agents are legally obliged to pass on all offers received.”
Severe lack
He says a “severe lack” of stock and growing demand were pushing rents up and “forcing more people to take more drastic measures”.
“The private rented sector plays a vital role in housing the nation and without stock levels realigning with growing demand, this situation is likely to worsen,” he says.
Rent rises have nothing to do with agencies encouraging ‘bidding wars’. Absolutely nothing.”
And John Adlam, Lettings Director at Hunters based in Southwark, dismisses the claim agents encourage bidding wars: “Rent rises have nothing to do with agencies encouraging ‘bidding wars’. Absolutely nothing.
“Landlords have been demonised and left the market decreasing supply.
“If Southwark want to slow rents rising then encourage landlords. Start by scrapping their largely pointless and expensive licensing scheme,” he says.
You couldn’t make it up.”
“Of course that won’t happen. Next solution to the problem they have created will be rent controls. Never worked anywhere. Create a problem then create a solution that doesn’t work to solve the problem you’ve created. You couldn’t make it up.”
Only an idiot with no knowledge of the property market would suggest it’s those ‘nasty evil’ estate agents who are forcing ‘poor vulnerable’ tenants to pay more than they can afford in rents. First rule of economics, if something is scarce & many more people want it THEY will force up the price. To all those Marxist Councils & pressure groups, it’s called Supply & Demand people and it’s entirely your fault. Their misguided vexatious policies & regulations have forced good decent landlords out of the sector & devastatingly ruined it for everyone! You reap what you sow.
Where is all this “action” occurring?
I have been a landlord in Northampton for 28 years and though I get around 10 enquiries per property advert, I whittle them down with the interview process.
My advantage is that I worked in sales for 16 years and ask questions to establish why the enquirer wants to live in my property and what “extras” they are coming with, pets, children or housing benefit.
This normally brings the number down to 3 or 4 viewings.
Prospective tenants must call me 15 minutes before the appointment, otherwise we do not send a staff member. I am now disabled, so no longer undertake viewings, the part of the job I used to enjoy most.
This was the opportunity to fully interview the prospective tenant and work out if they will be a good long term tenant. We have never offered short term lets.
The enquiries, well managed with a few thought through questions, along with measuring the time to come back to us from an answerphone message makes the process easier to manage.
Am I straining out the poorer quality applicants on the phone before wasting my employee’s time on a viewing which costs nearly an hour of their time?
No magic formula, just better use of expensive resources.