Cost of ban on tenant’s fees to lettings industry, industry revealed
The Tenants’ Fees Bill will costs agents an estimated £157.1m in the first full year of operation, it has been revealed.
The cost of the ban, set to start in spring 2019, was disclosed in an impact statement released this week as the bill formally starts its progress through Parliament.
The statement concedes there could be job losses or even some branch closures amongst the industry in England, which it says consists of around 16,000 letting agent branches.
David Cox, chief executive of ARLA Propertymark, said: “We do not believe the Bill will achieve its aims, as our own research last year demonstrated that tenants will end up worse off and banning fees will not result in a more affordable private rented sector.
“ARLA Propertymark has worked hard over the last 18 months to explain the unintended consequences of the ban to government, and we’re pleased they have listened and allowed Change of Sharer, Surrender of Tenancy, holding deposits, exempted the Green Deal Charge, and capped security deposits at six weeks, rather than the [MHCLG Select] committee’s proposed five-week cap.
“Now that we have greater clarity on what the ban will entail, agents must start preparing for when it comes into force.”