Millenial Victory As Lettings Agent Fees Are Being Banned

The Chancellor Philip Hammond has announced a ban on letting agency fees and we want to throw a party

MOST POPULAR
New Girl celebrating | ELLE UK
GIF

Known as Generation Rent, we've all been in that situation when you finally find the perfect flat or decide to continue your lease before being landed with whopping big fee from the letting agent asking for additional charges for administration, references, credit and immigration checks.

Well, my friends, that day is officially over because as of this morning, Chancellor of the Exchequer Philip Hammond announced that lettings agents in England will be banned from charging additional fees to tenants.

ADVERTISEMENT - CONTINUE READING BELOW

Can you hear that? That's the Hallelujah chorus echoing across the country from millennial renters.

MOST POPULAR

In his Autumn Statement today, Hammond revealed the government would be abloshing letting agents' fees in order to help the 4.3 million people in private rental homes, who are often forced to pay ridiculously expensive fees, such as non-refundable holding deposits, before even signing for their homes.

He also promised a £1.4bn cash-injection for 40,000 'affordable homes' while allowing developers to use the additional cash to build more rental properties.

Despite lettings and managing agents being legally obliged to publicise their feeds in England and Wales since last year, several housing charities have found that upfront fees have been rising in recent years.

The latest English Housing Survey found that fees amount to an average of £223 while, in 2012, Shelter found that one in seven tenants pays more than £500 – and that's before they start paying monthly rent.

And, as many tenants will know, letting agents often leave us with no choice to pay these fees given our desperation to nab a property in the rising competitive renting market.

Meanwhile, landlords, have had the choice of agencies to represent them to rent out their properties. But, from now on, landlords will be inclined to shop around for cheaper agents in order to attract prospective tenants.

Seeing it's predicted that by 2025, over half of the under 40s will be renting and unable to buy their own home, the abolishment of additional agency fees will mean that we'll finally have a bit more spare cash to go towards enjoying the finer things in life (branded ketchup, anyone) or even – dare we say it – saving up for real-life house deposit.

Hello, adulthood.

via GIPHY

However, while this might be a small victory for tenants, we shouldn't forget that tenants are still in need of a better-regulated, safer and more secure private rental market, with increased awareness of tenancy rights.

Read Next: