Competition to rise in the rental sector

PROPOSED measures have been drawn up to ban letting agent fees and encouraging greater competition in the rental sector in Halton.

Chancellor Phillip Hammond announced during last year’s Autumn Statement 2016 that the Government would ban fees paid by rental tenants.

A consultation lasting eight weeks applying to England only has been launched regarding the plans.

A Department For Communities And Local Government (DCLG) spokesman said that the move will bring an end to the small minority of agents ‘exploiting their role’ between renters and landlords, banish ‘unfair’ charges being imposed and stop those agents that double charge tenants and property owners for the same service.

The proposals also ban any letting agent fees being charged to tenants by landlords and other third parties.

Housing minister Gavin Barwell said: “We’re determined to make all types of housing more affordable and secure for ordinary working people.

“Tenants should only be required to pay their rent alongside a refundable deposit and not face hidden fees.

“Our housing white paper sets out other ways we will help those renting, including building more homes for rent and providing longer, family friendly tenancies.”

A report from the charity Shelter found that nearly one in four people in England and Wales feel that they have been charged unfair fees by a letting agent.

Fee levels vary considerably and the charity found that one in seven tenants pay more than £500.

The consultation on stopping letting agent fees comes after the Government’s plans in the recent housing white paper to create a bigger and better private rental sector that meets the needs of tenants and landlords alike.

The paper established measures to build the homes and give those who rent a ‘fairer’ deal and puts tackling the high cost of renting at the heart of its plan.

The DCLG spokesman added: “The ban also recognises that landlords are being hit with dubious fees.

“The measures create a more transparent market place so landlords can easily shop around for an agent to provide the quality of service they want at a price they are willing to pay.

“This avoids double charging and results in a better and more transparent service.

“Whilst most letting and managing agents provide a decent service, there are those that offer a poor service and engage in unacceptable practices.

“We want to ensure all tenants receive a good service from their landlord and letting agent.”

The proposed measures follow new rules cracking down on the small minority of rogue landlords that shirk their responsibilities.

Councils can now impose fines of up to £30,000 as an alternative to prosecution for a range of housing offences.

Rent repayment orders, which can be issued to penalise landlords managing or letting unlicensed properties, have also been extended to cover a wider range of situations.

These include the illegal eviction or harassment of tenants or using violence to secure entry.