Letting fees ban will not become law until at least Spring 2019

Posted on Friday, January 12, 2018

The Ministry of Housing, Communities & Local Government (MHCLG) reveals a lettings ban is still a long way off.



letting fees ban


The recently-renamed Ministry of Housing, Communities & Local Government (MHCLG ) does not expect the letting fees ban to come into force until Spring 2019, it has confirmed.

But aren't letting fees bad?  Well MPs were spoken to by experts from Shelter and the University of York’s Centre for Housing Policy that a letting fees ban could lead to higher rents as the lost fees will be added to by the landlords over the duration of the letting contracts.  This could also lead to a reduced number of rental properties available as Landlords reduce supply to earn a higher return.

Written evidence was made this week to both the Select Committee hearings, which examined the draft legislation, and to NALS (National Approved Letting Scheme).  The Ministry (MHCLG) has revealed that it will be at least a further 15 months before landlords and letting agents will be unable to charge fees to rental tenants. 

MPs were told at the hearing by experts from Shelter and the University of York’s Centre for Housing Policy that a letting fees ban could easily lead to higher rents as banned fees were added by landlords to the rent over the length of each tenancy, and also reduce the quality of rented accommodation as landlords tightened their purse strings.

We’re pleased to see more clarity on the timetable for implementation of the ban – it’s much needed for our industry and something NALS has long called for,” says Isobel Thomson, CEO of NALS.

“While the Bill aims to create a fairer and safer PRS for all, NALS doesn’t believe this will deliver what the government aspires to and risks doing real damage to the PRS.

“NALS urges [the] government to use this time to fully assess the impact of the Bill. It is crucial that government look again at the proposals and consider tenant fees in a broader, coherent framework of regulation for the PRS.

To add your name to petition the Government to reconsider the Tenants’ Fees Bill follow this link https://petition.parliament.uk/petitions/206569

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