Economy

Letting fee ban laws unveiled by Government

Letting fee ban laws unveiled by Government”

If a person has already breached the ban within the last five years, they will either be convicted under criminal law or fined up to £30,000.

A draft bill that could see letting fees banned and significant fines handed out to agencies that impose extra costs on tenants has been introduced to parliament today. "The rental sector can be a minefield of unforeseen costs and a ban on letting fees should make the whole process a lot more transparent and consumer friendly".

The draft Tenants Fees Bill can be found on the Department for Communities and Local Government website.

This latest action aims to help improve transparency, affordability and competition in the private rental market.

Communities Secretary Sajid Javid said:"Tenants should no longer be hit by surprise fees they may struggle to afford and should only be required to pay their rent alongside a refundable deposit".

It will also lay out proposed requirements on landlords and agents to return a holding deposit to a tenant.

Require Trading Standards to enforce the ban and to make provision for tenants to be able to recover unlawfully charged fees.

The Bill will introduce an enforcement authority in the lettings sector and will ensure that tenancy deposits are capped at six weeks' rent and that a holding deposit can not be for more than one week's rent.

'This new law must also be enforced so letting agents don't abuse the system'.

The draw bill also sets a cap on holding deposits at six weeks' rent.

John Midgley, chair of SAFEagent - a campaign set up to secure mandatory client money protection: issued a statement saying: "This consultation is a first vital step in achieving that goal".

Founder and chief executive of eMoov.co.uk Russell Quirk said: "The introduction of this bill brings us a step closer to levelling the playing field between letting agent and tenant and one that is certainly a step in the right direction".

But while renters will no doubt welcome the proposals, concerns have been expressed that agents will respond by passing on the costs to landlords, leaving them with no choice but to raise rents.

"Were delivering on our promise to ban letting agent fees, alongside other measures to make renting fairer and increase protection for renters".

In the forward to the draft bill he also says: "Whether you've been forced into life as a tenant or simply decided that it's the best option for you, you deserve to know that you will be treated fairly and not ripped off by the people you rely on for finding and renting your home".

"There is, of course, a danger that these agents will now try and recoup their losses through alternative means such charging higher fees to the landlord themselves".

"Since the plans were announced we have been lobbying the government and we met with the Minister of State for Housing and Planning, Alok Sharma MP, in September in order to press him to rethink his plans for a cap; taking into account the needs of those living and working in the private rented sector" says Chris Norris, head of policy at the NLA.



Like this

loading...
loading...

Latest


02 November 2017
Cops: Man attacks wife with hatchet, then kills self with chainsaw
Detectives say it all happened this way: An adult family member arrived at the home and was unable to open the front door. The man's step-daughter managed to overpower him, forcing the attacker off the woman and taking away the ax.

02 November 2017
New Sam Adams Beer Too Strong To Be Sold In 12 States
State liquor laws in those states prohibit beers with alcohol content that high from being sold there. About 13,000 bottles will be distributed throughout the USA this year, excluding some states.

02 November 2017
Kidde recalls fire extinguishers that don't extinguish fires
The CPSC said there have been approximately 391 reports of failed or limited activation or nozzle detachment, including the death. The federal government is launching a massive fire extinguisher recall , covering almost 38 million Kidde extinguishers.

02 November 2017
Chad's Morning Brief: Papa John's Slams NFL Over National Anthem Protests
The stock is down 24% this year, while competitors including Domino's have performed well (Domino's stock is up 12% this year). Eight years later, Jones appeared in a Papa John's commercial, where he rapped through the whole thing .

02 November 2017
Scientists Say They've Found Hidden Space In Great Pyramid Of Giza
Muons have been used to study the structures inside Mount Vesuvius and to inspect the cargo of suspected smugglers . Those chambers are connected by several corridors, including a high-ceilinged passageway called the Grand Gallery.

02 November 2017
Facebook, Inc. (FB) Releases Quarterly Earnings Results, Beats Expectations By $0.31 EPS
It is positive, as 48 investors sold FB shares while 553 reduced holdings. 159 funds opened positions while 684 raised stakes. Cantor Fitzgerald reaffirmed a "buy" rating and set a $190.00 target price on shares of Facebook in a report on Tuesday.

02 November 2017
Tyson Fury eyes fight with Anthony Joshua, seeks Trump's support
But he believes a bout with Joshua would resemble Muhammad Ali's legendary " Rumble in the Jungle " with George Foreman in Kinshasa in 1974.

02 November 2017
Super-SUV: 176mph Alfa Romeo Stelvio Quadrifoglio revealed
Alfa Romeo has revealed details of the Stelvio Quadrifoglio , which has just secured a new record at the Nurburgring. Powering the new SUV is a 2.9-litre V6 Bi-Turbo petrol engine which generates 510hp and 600Nm of torque.

02 November 2017
Kevin Spacey seeking "evaluation and treatment" in wake of sexual misconduct allegation
Since then, several claims have been made against Hollywood actors and directors, including Jeremy Piven and Dustin Hoffman. He added that the story had made him "address" other personal matters and that he chooses "now to live as a gay man".

02 November 2017
State To Let Medical Marijuana Dispensaries Stay Open While Awaiting Licensure
The feedback played a big role in the decision, said Director of LARA's Bureau of Medical Marihuana Regulation Andrew Brisbo. Patients and others had expressed outrage that businesses would be forced to close for months while awaiting a license.