Landlords Face New Tenants Fee Bill Outlined in Queen’s Speech23rd June 2017
A new Tenants’ Fees Bill announced earlier this week during The Queen’s Speech will dramatically change the way fees are charged in the lettings market. At the present time fees are levied to tenants, usually at the start of a tenancy, to cover reference costs and in some cases, the cost of producing leases etc. In future the legislation will stop these charges being made to the tenant and instead, all costs will have to be met by the landlord who can then decide, under the new regime, if this is passed on to the tenant in the form of higher rents.
H&H King is one of the largest letting agents with Carlisle offices located in both the City Centre and Rosehill, together with an office in Penrith. The team of experienced estate agents operating at H&H King work with landlords looking to let property both sides of the Borders.
Sarah Wright, Residential Lettings Manager at H&H King, based in Carlisle, explains: “In recent years Carlisle has seen an increase in house letting by private landlords looking for long term investment income.
“Currently, the area has a very active private rental market with a good demand for properties. The approach from landlords is also very professional in maintaining their properties and complying with regulation.”
Over the last few years the Government has been very active with new legislation and in total there are now over 140 acts and 400 regulations covering the sector. In addition, changes to the tax system have seen an increase in costs for private landlords. Ultimately, the biggest concern with these extra costs is that rents increase as landlords look to maintain returns on their properties.
It is unfortunate that agents charging high fees, particularly in the South East market, have led the Government to introduce these measures which have been used by reputable agents in a very open and straight forward way. It is important landlords employ good letting agents to deal with matters and to make sure they comply with all new legislation and get good advice on rental levels.
Over the last few years the Government has very much looked to the rental sector to provide homes, however these changes in legislation and tax regime have made it less attractive to people looking to privately let their properties. H&H King work closely with a number of landlords, letting properties from bedsits to country mansions, and are currently experiencing an influx of people looking to rent.
Sarah continues: “To date we have not seen landlords looking to come out of the letting sector because of the new tax rules on let properties, however, this may change as they see their tax assessment forms come through later in the year. After several years of relatively little increase, we may see some upward movement in rental prices, but I think it is unlikely we will see too many landlords exit the sector as people tend to see letting as a long term investment. Our aim is to continue to work with both landlords and tenants to ensure that letting remains a viable option for both parties.”
For more information email Sarah or call the office on 01228 810799 Ext 2