Renters are currently paying an average of £200-£300 in letting fees per tenancy according to The Guardian, and some pay much more.
Raffy Liu, the manager of a Salford-based agency called Sun Bright Property, says the ban is not a good thing for her agency, as the money charged for elements such as credit checks go entirely to the credit check agencies, not to her company.
However, due to the fact that the number of properties offered to rent is greater than the demand regarding the Salford area, Raffy Liu thinks the prices might even go lower in the next years.
Letting agent fees hidden in rents’ costs
Even though many people may think that the fees are going to be covered in rents’ costs and the situation will become even worse, there is no proof of that.
A research made by Shelter shows that Scottish landlords, where the ban has come into force fully in 2012, there were no increased rent costs. This is a good reason for locals to celebrate, as they are finding moving out costs “a struggle”.
However, in the ban, there are mentioned some “default fees”, which leaves many people thinking that the money they are going to pay to rent a flat will be the same.
According to iNews.co.uk, Polly Neate, Shelter’s chief executive claimed the following:
“Default fees risk watering down the ban by leaving the back door open for agents to carry on charging fees.
“Renters could see themselves hit with more ridiculous charges for things like leaving a jar in the kitchen cupboard or having a bin bag taken out.”
On the other hand, some people are expecting rent prices to go up. A local estate agent explained:
“When this will happen some of the agencies might try to pass the costs to the landlords, and their reaction might be increasing the rent prices. However no one really knows how it is going to be like, our agency does not have a plan set for 2019’s spring,” he explained.
If you are planning to change your address in the near future after the ban, you can check several agencies who might help you understand better what to expect before and after the ban. Below is a map that might help.