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|Bob Young, Fleet Mortgages, comments on anticipated ban on letting agent fees for tenants|
|Wednesday, 23 November 2016|
Below are some comments from Bob Young, Chief Executive Officer of buy-to-let lender, Fleet Mortgages, on today’s anticipated announcement in the Autumn Statement banning letting agent fees for tenants:
“The problem we have here is that some letting agents are indulging in poor practices which have highlighted this as an issue. Listening to the debate, and from my own experiences, there seems to be a wide range of charges for tenants so some standardisation would be useful. It seems that some letting agencies charge what they can get away with which must put off some people from renting and that can't be good. Letting agents can also be conflicted as they charge both the landlord and the tenant; not many firms have this as a business model.
“Given the likelihood these charges will now have to be paid by the landlord, they will be able to offset letting charges against tax. I’m not completely convinced these measures will result in an increase in rents as typically landlords charge what the market will take and that may not allow an increase.
“Overall the private rental sector has good landlords, good tenants and good letting agents. Unfortunately it also has poor landlords, poor tenants and poor letting agents and these latter elements need to be dealt with.”
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