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ARLA States Tenancy Fee Ban Inevitable

  22 Oct 2018

With the tenant fee ban having made its way through Parliament and receiving the backing of many MPs, it looks likely that it is set to be introduced. With ARLA Propertymark stating that they believe the tenant fee ban is inevitable, it is important that landlords are aware of the implications of the ban, with ARLA themselves stating that the ban will lead to a “seismic shift” in the way that the letting market operates.

There will be people that believe this is no sad thing but for the many businesses and professionals that operate in the letting sector, the change could be extremely challenging. The CEO of ARLA Propertymark was speaking on a webinar recently and he intimated that things are likely to get worse in the market.

David Cox said; “There’s no silver bullet, because every agency runs their business differently, but I think everyone needs be looking first at how they can reduce their costs and how they can maximise their income.”

Politicians strongly backed the bill

The Bill is likely to be introduced on the 6th of April 2019 and even though Cox and his organisation have grave concerns about the Bill, he doesn’t believe that lobbying was worthwhile because there were no politicians willing to oppose the Bill.

Cox went on to say; “Landlords are starting to get a bit twitchy and some are leaving the market – and while the Government continues to attack the Private Rental Sector, it’s only going to get worse. We’ve been advocating strongly that they need to take a pause and look at what has worked and hasn’t worked and then fix it.”

Landlords and agents will be affected by the changes

While the impact on landlords and businesses should be enough to make people sit up and take notice of the matter, it is likely that most people and politicians will only become engaged with the process when the impact on tenants is clear. There will be some positive aspects for tenants from the Bill but with agents having to significantly reduce costs, it is likely that the standard of service being provided to tenants will suffer in the long-term.

Cox also spoke about the new authority that is being set up to monitor and enforce legislation and he admitted that this was long overdue. Cox said; “I think everybody accepts that enforcement in our industry is beyond atrocious. The new authority will be able to offer guidance on how to implement the law so we might have a little bit of consistency of interpretation, which we haven’t always had, and prosecute agents.”

It is likely that many firms will see this as an opportunity, particularly tech firms who claim to have solutions for every business problem, but many landlords will think that they must get to back to basics in providing a string service or leave the industry.

Any local landlord who is concerned about what is going to happen and who is looking for support will find that Jezzards is here to help. If you’re looking for guidance or ideas on what is going to happen next, we are more than happy to assist you, so please get in touch with us today on 03330 433 633 or contact us online.


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