View more on these topics

Letting agents banned from charging fees to tenants


Letting agents in England will be banned from charging fees to tenants under a policy announced in the Autumn Statement.

Tenants moving into a new house can be charged numerous fees from referencing to credit checks and ‘administration’ fees.

Hammond says: “Letting agents are currently able to charge unregulated fees to tenants, often of hundreds of pounds.

“We have seen these fees spiral despite attempts to regulate them. I can announce today that we will ban fees to tenants as soon as possible.”

Letting fees have already been banned in Scotland.

OneSavings Bank sales and marketing director John Eastgate says letting fees have “inflated beyond reason in certain parts of the country”, and welcomed the policy.

However, he says “renters will inevitably pay for the further cost on landlords through increased rents.”

UK Association of Letting Agents executive director Richard Price says the policy is not the correct way to address affordability issues in the private rented sector.

Price says: “A ban on agent fees may prevent tenants from receiving a bill at the start of the tenancy, but the unavoidable outcome will be an increase in the proportion of costs which will be met by landlords, which in turn will be passed on to tenants through higher rents.

“UKALA agents strive to provide a premium service which represents excellent value for money and this ban will place in jeopardy hundreds of professional businesses in order to deal with the few unscrupulous”.

Fleet Mortgages chief executive Bob Young says, however, that landlords will be able to offset letting charges against tax.

He says: “I’m not completely convinced these measures will result in an increase in rents as typically landlords charge what the market will take and that may not allow an increase.”


Chancellor eyes boost to homes and wages in Autumn Statement

Chancellor Philip Hammond will seek to boost income levels and deliver more affordable housing in his first Autumn Statement later today. The BBC reports measures to be included in the Autumn Statement include reducing the rate at which benefits are withdrawn when people start work, and increasing the national living wage to £7.50 an hour […]

Martin Foden discusses how convenience is affecting the construction of fixed income portfolios

In this short video, Martin Foden, head of credit research at Royal London Asset Management, discusses how convenience is affecting the construction of fixed income portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not […]

Apple: a stellar technology story

By Ali Unwin, head of technology sector research

Apple recently announced the highest-ever recorded quarterly net profit ($18bn), with the sale of 74.4 million iPhones helping the company deliver $74.6bn of revenue for the quarter ending December 2014. These sales were largely driven by strong demand for the new iPhone 6 and iPhone 6 Plus. Highlights included Chinese iPhone sales doubling year-on-year and unit growth of 44% in the US — supposedly a well-penetrated market. Apple ended the quarter with $178bn in cash on its balance sheet, having generated a staggering $30bn in free cash flow during the quarter.

At Neptune, we have been long-term believers in the Apple story, and continue to hold the stock in a number of our portfolios based on the company’s long-term growth prospects. This is predicated on our belief that Apple has proved thus far that it can — unusually for a consumer electronics company — maintain high margins for a sustained period of time, even as adoption of new technology slows down and competitors produce similar-specification products.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. It often surprises me that landlord always assume rents will go up, or they can increase them at will.
    At some point as wages, or the portion spent of a tenants income will reach breaking point. When and it is Inevitable it will the bubble will burst combined with other factors stamp duty loss tax relief land lords could be in for a hard ride
    Only to day on the BBC web site a landlord made the following comment that they

    They stated having to pay these extra costs faced by landlords will lead to higher rents.
    she then stated
    “We do not make a profit on our property we rent out because there is the service charge and insurance and mortgage, and there is a new tax law coming in,”

    I then wondered what will happen to all those who use property investment as an alternative to a pension or a well diversify its savings. pension
    Do they sell chunks of the house to provide the retirement income

    No wonder Carney is concerned

Leave a comment