However, a fear of change is no reason to avoid making improvements. In fact, the situation facing many people in the lettings market means that change must be made or matters will become much worse. There is a lot said about the up-front costs associated with buying property but there is not too much discussed about the up-front costs of letting property.
Moving into rental accommodation can be expensive
Tenants moving into property have many bills to pay, including:
- The first months’ rent in advance
- The deposit, which could be equal to two months’ rent
- Letting fees
- Removal costs
Depending on the area and the rental fee, it is not uncommon for these costs to venture into thousands of pounds. This places a considerable amount of pressure onto tenants to find this money up-front. Even though evidence suggests that the average cost of letting fees is £223, there has been enough stated evidence to say that not all tenants are this fortunate. It has been known for some tenants to face letting fees that amount to £1,000; made up of various fees under the lettings fee umbrella. These costs may prevent people from entering the rental market, and this is why the Government is said to be taking action.
Tenants will have some concerns of scrapped letting fees
Tenants who are worried about the level of letting fees they must pay will be pleased to hear that the Government has announced that letting fees will be scrapped. There has also been a movement to limit the amount of money that can be asked for with respect to a deposit, and at this point in time, the cap looks set to be placed at six weeks. This means that the deposit may still be a sizable figure but it will provide some guidance for potential tenants looking to budget. However, it is believed that these changes will not come into effect until spring of 2019, so anyone looking to move into rental property tis year is unlikely to benefit.
While some tenants will be pleased about these changes, there will be others who have concerns about these fees being displaced. It is only natural that some people will assume that letting agents won’t allow this income to be lost, they will find ways to recoup the money in other ways. This is an accusation that has been levelled at many professionals in the lettings sector, and there is a need to see how professionals react.
However, a letting fees ban has been in place in Scotland and a study undertaken by Shelter suggests that there was no real impact of these fees being removed. There was no indicator that rental fees rose after the removal of letting fees, and many tenants will be hoping that this situation occurs in England and Wales.
When it comes to staying on top of news and information in the lettings market, turn to the experts for help. If you want to be fully informed, make sure you contact Taylor Robinson and we look forward to helping you.