fees
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Latest property news
‘Tenant fees ban will drive more landlords to self manage’
The tenant fees ban proposed by the government during Philip Hammond’s Autumn Statement recently will persuade more landlords to self-manage their properties, which in turn will place tenants in the hands of a largely unregulated part of the industry. This was one of the main conclusions of this week’s meeting of minds at the latest NALS Fair Fees forum, which met in central London last Friday at an undisclosed venue, and whose work NALS says it is ‘pretty pleased with’. It is preparing a comprehensive response to the looming government consultation on fees and the forum discussed a specially-commissioned report into the work of agents in securing tenants for a property, how the fees ban is working in Scotland for tenants, agents and landlords and how the ban might affect how the redress schemes operate. The forum was also reminded by representative from the Department of Communities and Local Government that the ban was unlikely to be kicked into the long grass and remained the ‘political will’ of ministers. Primary legislation is expected this Autumn with a fees ban to come in during early 2018. But industry representatives highlighted how a ban would lead to a poorer service to tenants and increased…
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Regulation & Law
Local tragedy sparks campaign against letting fees
A councillor in Southend, Essex has vowed to do battle with local agents who charge tenants high letting fees after his son killed himself over the cost of renting a flat. Southend independent councillor Tino Callaghan says the council has supported his motion to ‘name and shame’ local agents charging tenants high administration costs. Mr Callaghan, who launched the initiative with fellow councillor Laurence Davis, says his son was worried because he couldn’t afford the cost of a deposit for a flat to house his family. “Registration fees can be astronomical and we have spoken to many tenants who been caught out with fees,” Mr Davis told the Halstead Gazette. “The council can’t enforce anything but they can name and shame those who are not acting in the best interests of the public.” This tragedy played out in Southend is the latest development in a growing campaign by several media outlets, councils and politicians to highlight what they see as the excessive administration fees charged by some agents. This includes The Guardian newspaper which recently called fees a ‘great letting agency rip-off’ while in May this year the London Borough of Tower Hamlets gave six local agents 28 days to display…
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Mentoring
Creating a good first impression
"We are in need of more listings, but with strong local competition, fees are under huge pressure. We need to present an impressive image and back it up – but how?"
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Latest property news
Mortgage rates hit nine-year low
Interest rates on mortgages have hit record lows, but borrowers are being hit with higher fees, as banks look to protect their profit margins, according to figures from Moneyfacts.co.uk. The average interest rate on a two-year fixed mortgage fell to 2.52 per cent in February, down from 3.14 per cent a year earlier and the lowest level since Moneyfacts.co.uk, which compiled the data, began monitoring the sector in 2007. But while interest rates might be falling, banks are increasing the fees they charge borrowers to arrange a loan, with the average mortgage fee today being a full £68 higher than in June 2014 – hitting a 21-month high. Some of the fees borrowers are being asked to pay is nothing short of shocking – up to £7,499. “The current mortgage market boasts some of the lowest rates on record, which is great news for borrowers, but the increase in the average mortgage fee clearly shows that some of these headline grabbing rates are being compensated for elsewhere,” said Charlotte Nelson, from Moneyfacts.co.uk. “Some of the fees borrowers are being asked to pay are nothing short of shocking, with up to £7,499 being charged for some high value loans,” she added.
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Features
Commission disputes
Avoid commission disputes: remember that only one fee is payable,” says Christopher Hamer, The Property Ombudsman.
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Mentoring
How to win business
"Instructions continue to be tough to come by and we are scrapping for them against competitors who continue to undercut on fees. Any tips on winning this particular ongoing battle?
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Regulation & Law
New protection for tenants and landlords
Letting agents are now required to publish full details of the fees they charge. In addition, agents are also obliged to state whether or not they are a member of a client protection scheme and which redress scheme they are signed up to. The new legislation contained within the Consumer Rights Act 2015 came into force last week and is designed to ensure a fair deal for landlords and tenants, closing off the opportunity for a small minority of rogue agents to impose unreasonable, hidden charges. All letting agents are now required to publish a full tariff of their fees – both on their websites and prominently in their offices. Anyone who does not comply with these new rules will face a major fine. David Cox (left), Managing Director, Association of Residential Letting Agents, said, “Relevant information should be placed prominently in offices where letting agents have face to face contact with clients, as well as on their websites. Any costs to landlords and tenants must be clearly defined and comprehensively outlined, including all fees, charges and penalties that may be charged before, during and after a tenancy.” Meanwhile, more than 3,000 professional lettings agent across the UK have joined…
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Agencies & People
