On 1st June, the Tenant Fees Act 2019 will come into force meaning that agents across the UK will no longer be able to charge fees to tenants. Last week we caught up with the BPL with our thoughts on the upcoming changes…
What does Sarah Kenny think of the changes?
The changes will bring uniformity to the industry – it’s a big change for all agents/landlords to manage but it will ensure that tenants receive a fair service throughout. We are in a fortunate position in that we will be able to absorb some of the costs such as referencing but some smaller agents may not be able to which may mean that there could unfortunately be closures.
How will Sarah Kenny adapt to the changes in legislation?
We will adapt with the market. As a fully regulated agent, the changes for us to put into place are mainly tweaks to internal processes but we have a strong team and are confident of the modifications being made. The government like to keep us on our toes with all these changes!
Do you think these changes will address the problem the govt is keen to tackle?
The changes will stop tenants paying high level fees, however, landlords will ultimately be affected with costs to them likely to increase. We deliver a valuable service and our fees cover the cost of ensuring that a rented property is legally compliant and professionally managed. If a landlord’s costs increase, then they will most likely pass it on to the tenant in the form of higher rents.
What other/better tactics do you think government could have opted for?
We think that the government should have capped the fees at a certain level which would have stopped agents charging excessive amounts. We think that fees should be open, transparent and reasonable but not all agents work on that basis. We feel that they represent legitimate costs to the business that need to be covered and therefore a cap would have been better.
We are ready and have everything in place here at Sarah Kenny to continue providing a first class to service to both our tenants and landlords alike. Let us know if you have any queries about the changes coming up and of course do not hesitate to get in touch with your thoughts on the fee ban too…