Tenant Fees Act 2019 Success Claim Rejected
Estate agents are united in their condemnation of a claim that the Tenant Fees Act 2019 has worked and saved tenants £400.
Agents reject claims the Tenant Fees Act 2019 is a success, pointing to much higher rents as proof it hasn’t worked.
Research had suggested the policy was a success by restricting some agents from charging excessive fees.
Academics from Warwick University and Bocconi University in Italy found that agent fees were reduced by an average of £400 per tenancy.
“In fact, our five years of research show that the policy did not lead to higher rents.
The main effect of capping agent fees has been to save renters an average of £400 per tenancy.”
“Some letting agents increased the fees they charged to landlords, passing on some 25% of their reduction in revenues.
“The main effect of capping agent fees has been to save renters an average of £400 per tenancy.”
But Jason Davies, Director at Davies Properties in West Yorkhire, says: “Over the past five years, we’ve witnessed a mass exodus of landlords from the PRS, driving rents to unprecedented and unsustainable levels.
The failure of policymakers … to address the root causes of this crisis is staggering.”
“The failure of policymakers – regardless of whether they sit on the Conservative or Labour benches – to address the root causes of this crisis is staggering.”
Phillip Ilic, Director at Property Link Estates in Bath, agrees: “Absolutely, costs have gone up on landlords and this has been passed onto the tenants by permanent rent rises.
“An average saving of £400 to the tenant per tenancy – £33 a month over 12 months, of course rents went up in excess of £33 a month.”
Costing money
And John Redden, Partner at Belvoir Tynedale in Northumberland, says: “Far from saving tenants money my experience is that it is costing them a considerable amount of money.
“We used to charge £240 inc vat so we were left with £200. All our landlords without exception accepted we transfer that fee to our tenant find/change fee.
“Then again without exception they increased rents by on average £15 pcm.”
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