The tenant fees ban is now just over two weeks away (1st June) and landlords and agents are being urged to get ready for its arrival. Following the introduction of the ban, if a landlord overcharges even by accident, repaying the tenant as soon as possible, they could still be liable for fines.
The ban is being introduced to benefit tenants, while also attempting to rid the sector of rogue landlords and letting agents who impose unnecessary fees on their tenants.
There has already been reports of rents rising throughout the UK in preparation for the Tenant Fees Ban. If landlords are not subsidized for the money lost from scrapping deposits, they will either have to foot the bill or find another source of revenue.
As it has become increasingly hard to earn a living as a buy-to-let landlord, landlords will be forced to raise rents to remain profitable. This will likely have a snowball effect: as rents rise, supply will fall which will further drive rent prices upwards. This is important, as around ½ of households in the UK live in private rented accommodation.
The tenants fees ban is one of many changes set to impact the property industry and the influx of new legislation shows no sign of stopping. More than ¼ landlords now are looking to sell at least one property over the course of the next year.
Be sure to remain compliant with new rules. To make this easier, the Association of Residential Letting Agents (ARLA) has produced a guide to help landlords and letting agents adjust: https://www.arla.co.uk/news/april-2019/tenant-fees-act-2019-guidance-and-toolkit-released.aspx