The Queen's Speach raised some concerns through the estate agents as there will be a considerable amount that they will loose if the bill comes in place. What will be the outcome of The Draft Tenancy Bill nad how will this potential problems be overcome? Only time will tell...
The Queen’s Speech which took place on 21st June to open the new parliament revealed a new proposed bill that will impact tenants, landlords and estate agents alike. The aim of the Draft Tenants’ Fees Bill is to make the rental market more competitive and thus more affordable.
A recent survey conducted by Citizens Advice found 64% of tenants had problems paying letting Agent fees and more than 42% had to borrow money to do so.
What is The Draft Tenancy Fee Bill?
The bill plans to ban the letting fees that current tenants face when securing a new property to occupy except for:
- Capped refundable security deposit of no more than one month’s rent
- Capped refundable holding deposit of no more than one week’s rent.
The bill would also try and install measures which would allow tenants to receive refunds if they have been unlawfully charged.
What does this mean for tenants?
As the bill has yet to be presented to the House of Commons, at the moment this is all hearsay.
However, it is possible that in order for Estate Agents/ Landlords to secure their properties the rent price for properties may increase so that the receive a larger security and holding deposit.
Do you have a pet?
According to research conducted by the National Landlords Association, 47% were unwilling to allow pets, with 41% of those citing the reason as potential property damage. As a way of compensating Landlords’’ concerns The Dogs Trust’s Lets with Pets scheme encourages Landlords to either increase the security deposit or include a “professional cleaning on move-out” clause in the tenancy agreement for those with pets. This scheme was introduced as a means of alleviating concerns of Landlords who prefer tenants without pets due to the financial risk that pets may cause such as, potential property damage. However, as The Draft Tenancy Bill proposes to ban these higher deposits or additional fees; prospective tenants with pets are likely to be affected.
What will be the outcome of The Draft Tenancy Bill and how will these potential problems be overcome? Only time will tell…
written by Constantia Papageorgiou