‘No evidence’ as to why Welsh tenants should pay letting fees
By |Published On: 22nd August 2017|

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‘No evidence’ as to why Welsh tenants should pay letting fees

By |Published On: 22nd August 2017|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

The Welsh Government has stated that buy-to-let landlords should be responsible for paying letting agent fees in the country. This comes despite concerns that any such move will lead to higher rents, as landlords seek to pass on any costs, according to the Welsh Government.

A report from the Government claims that there is ‘no compelling evidence’ for tenants to pay letting agent fees or renewal costs upfront. This is because, ‘the large majority of the work undertaken by agents is work that the landlord would otherwise be doing themselves.’

Service

In addition, the report acknowledges that ‘referencing tenants is a service to landlords, not tenants’ and there is, ‘work involved for agents setting up a new tenancy.’ It is also argued that they, ‘do not generally make excessive profits on set up fees in relation to costs incurred.’

The report went on to say: ‘Inventories and tenancy agreements do protect both parties from false accusations, but it is soon to be a legal obligation on the landlord to provide a tenancy agreement, and therefore it is a service to the landlord to do this job for them.’

‘Arranging viewings and advertising a property are also a service to landlords, just as a job advert 60 is paid for by the employer, and estate agents charge sellers, not buyers, to advertise their home.’[1]

'No evidence' as to why Welsh tenants should ban letting fees

‘No evidence’ as to why Welsh tenants should ban letting fees

Consultation

Just last month, the Welsh Government launched a consultation on banning fees to tenants, following an announcement that it will be taking action in order to prevent unfair fees.

This consultation looks to seek views on the nature and level of fees being charged to tenants. Alongside looking if these fees are justifiable, it also looks to gather information on fees paid by landlords to agents and any consequences of proposed bans.

 

[1] https://www.landlordtoday.co.uk/breaking-news/2017/8/no-compelling-evidence-as-to-why-tenants-should-pay-letting-fees

 

 

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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