Here we go again!
The Queen has spoken – briefly on her way to Ascot – and the news is not good.
As expected the Government has re-affirmed its commitment to ban letting agents fees to tenants in the form of the Draft Tenants’ Fees Bill. Less expected was the inclusion of two new ‘caps’:
- Security deposits will no longer be able to exceed the value of one month’s rent. Compared to the restriction which already applied of one sixth the annual rent (aka two months’).
- Holding deposits will no longer be able to exceed one week’s rent.
All in all more unnecessary regulation from a government intent on disrupting a market which works for the majority.
Is there any good news?
Perhaps not good, but neutral. As a draft bill the timetable for implementing these proposals has been stretched.
Draft bills have to undergo consultation and scrutiny in both houses of parliament, before a ‘proper’ bill is produced.
Once a bill is drafted it is then introduced into parliament and has to work its way through the various stages of the passage of a bill before finally receiving royal assent – only after which can implementation begin.
So it may be a while before we see the ban(s) come into force.
Is there anything else?
Most of the focus is understandably on delivering the UK’s exit from the EU, but agents should take note of the following (non-legislative) commitment made today to:
“look at ways we can streamline the home buying process so it is cheaper, faster and less stressful for people when they make the biggest purchase of their life”.
Anyone for HIPs?