‘Scotland survived the tenant fees ban, so will English lettings agents’

first_imgHome » News » Housing Market » ‘Scotland survived the tenant fees ban, so will English lettings agents’ previous nextHousing Market‘Scotland survived the tenant fees ban, so will English lettings agents’Claim is made by rent guarantor scheme boss who says Scots landlords were happy to add extra costs to rent following its fees ban four years ago.Nigel Lewis18th June 201901,019 Views Letting agents in Scotland made up the shortfall in fees lost when its tenant fees ban came in four years ago by persuading landlords to include the additional costs in rent increases, it has been claimed.The comments by Jeremy Robson (below), Group Chief Executive of renting guarantor scheme Helping Hand, come despite complaints in Scotland last year that the tenant fees ban had led to lost jobs and agency closures.Conversely, Robson says the Scots experienced should be heeded by English agents thinking of selling up their portfolios rather than thinking they have to ‘struggle on’ following the fees ban.“At the moment you’ve got the likes of LSL, Connells, Leaders and loads of big agencies out there approaching the smaller independent companies and enticing them to sell up their portfolios,” he says.“But our experience has been that our Scots clients were able to persuade their landlords to add the extra costs to their rent, and therefore the letting agents made more money in the long run because 10% of the rent as a management fee, for example,  is 10% of more rent.”Helping Hand provides a rent guarantor scheme that’s not based on an insurance policy via some 4,000 letting agents in the UK and currently has rent under guarantee worth £77 million and processes 10,000 tenancies a year.Tenant Fees ActRobson, who has been working in the lettings business for 20 years, says his company has been facing its own challenges after it became illegal for letting agents to require tenants to take out a rental guarantor policy before renting a property, under the Tenant Fees Act.“We haven’t seen a drop-off in demand for our product because if a tenant doesn’t have parents with the financial background to be guarantors, or the ability to pay the rent in advance, then they really have to use us or one of our insurance-based competitors in order to rent in the UK,” says Robson.Helping Hand rent guarantor Jeremy Robson June 18, 2019Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021last_img read more

"‘Scotland survived the tenant fees ban, so will English lettings agents’"