Letting Agents: Fees and Charges

Ministry of Housing, Communities and Local Government written question – answered at on 9 July 2018.

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Photo of Matthew Offord Matthew Offord Conservative, Hendon

To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of how letting agents in England would cover costs currently paid from the fee on tenants in the event that letting agent fees are abolished.

Photo of Nigel Adams Nigel Adams The Lord Commissioner of HM Treasury, Parliamentary Under-Secretary (Housing, Communities and Local Government)

The Tenant Fees Bill is not about driving letting agents out of business. Letting agents should be reimbursed for the valuable services they provide but this must be by landlords rather than tenants. It is only fair that the party who contracts the service should pay for the service. We do not expect the full level of tenant fees that are charged currently by letting agents to be passed on to landlords. Currently, there is evidence of excessive charging by letting agents, such as double charging of both landlords and tenants, or charging more than the economic value of services provided. Good letting agents, providing services that represent value for money to landlords, will continue to play an important role in the market. This is what the provisions of the Bill will achieve – landlords will choose the agent that provides the quality of service that they are seeking at a price that they are willing to pay. Government has carried out an impact assessment to accompany the Bill, which is available at https://www.gov.uk/government/collections/tenant-fees-bill#impact-assessment

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