David Cox lettings fees
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Total tenant fees ban will cost industry 4,000 jobs, claims ARLA research
A total tenant fee ban will cost the industry £200 million a year in turnover and 4,000 jobs according to research published today by The Association of Residential Letting Agents (ARLA). The research also suggests that landlords will lose £300 million in income while tenants will pay an extra £103 a year in rent on average. ARLA commissioned Capital Economics to look at the lettings industry, which it says turns over £4 billion a year and employs 58,000 people charging on average £206 per tenant or £412 for a pair of tenants. £700 million a year The research also reveals that tenant fees generate around £700 million a year for the industry or 20% of its turnover. In what ARLA describes as the “damning, unintended consequences” of a ban, it will benefit those who move house often, but push up rents for those who must or choose to stay put for long periods. “The letting fees ban favours those tenants who move more regularly, says ARLA Managing Director David Cox. “This is because both short term tenants and long term tenants – who move less frequently – will see a rise in rent equivalent to £103 per year under our…
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Autumn Statement: Hammond confirms letting fees ban
As expected Chancellor of the Exchequer Philip Hammond has announced this lunchtime in his Autumn Statement that letting fees for tenants are to be banned outright “to improve competition in the private rental market and give renters greater clarity and control over what they will pay,” he said. David Cox, MD of ARLA, disagrees: “A ban on letting agent fees is a draconian measure, and will have a profoundly negative impact on the rental market. It will be the fourth assault on the sector in just over a year, and do little to help cash-poor renters save enough to get on the housing ladder. This decision is a crowd-pleaser, which will not help renters in the long-term. All of the implications need to be taken into account. A ban on letting agent fees is a draconian measure, and will have a profoundly negative impact on the rental market.’ “Most letting agents do not profit from fees. Our research shows that the average fee charged by ARLA licenced agents is £202 per tenant, which we think is fair, reasonable and far from exploitative for the service tenants receive.” The ban that been on the cards for months and according to Isobel…
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