Student letting fees ban

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    Student letting fees ban

    Hi all,
    My son is in first year at Uni and has just found a student house for 2nd year, sharing with five others. how will the tenant fees ban affect him. He has already paid a holding deposit for house. he will get the house from 9th Sep, so after date of ban.

    Hollywoos

    #2
    It's my understanding that the fees apply to contracts agreed and signed before the date of the ban, regardless of when the tenancy itself begins.

    However, a holding deposit is not a fee as such unless it is non-returnable. It's normally offset against the tenancy deposit once the tenants commit by signing the contract. By 'agent's fees' I think what is meant is the silly amounts which agents tend to charge students for 'finding them a house', typically £150-200 per student. Half the time the agents don't even accompany the prospective tenants on viewings - in busy periods they just send them to the address in the hope the current Ts will show them round. It's basically a very expensive introduction service. The fees also cover printing out a standard contract and asking their Parent Guarantors lots of nosey questions via a credit search (for which parents are usually charged extra).

    Another nice little earner is telling Ts that they must sign a new contract to renew a tenancy, when most of the time, they could just let it become periodic at no cost,.

    Needless to say, agents aren't charities, so as soon as they are not allowed to charge Ts for 'admin' , they will charge the LL instead. Private LLs aren't charities either, so they will no doubt recoup the extra charge by shoving the rent up. There's no such thing as a free lunch.

    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

    Comment


      #3
      Ask again in a month or two when the bill have received Royal Assent, and a commencement order have been laid down.
      I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

      I do not answer questions through private messages which should be posted publicly on the forum.

      Comment


        #4
        Now has Royal Assent. My view is that contracts signed before 1st June will not be covered, but I’m happy to be corrected (as I’m in precisely the same position)!!

        Comment

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