The subject of letting agent fees has been a hot topic for many months. The Tenant’s Fees Bill has been proposed in order to promote and encourage a greater level of transparency in the housing markets and it has led to the government banning letting agents fees and capping tenancy deposits at a maximum of six weeks.
Although the Government has revealed the regulation, we are unlikely to see the ban come into force until after Spring 2019. This is a lot later than many people expected, presumably this is when the cap on deposits will also take place.
One letting agent however, has taken their own initiative on this issue. A new branch of Move Revolution agency has opened in Weston-super-Mare, heavily promoting the concept of no-deposit renting.
The branch is being led by lettings agent and software expert Dan Reasons and finance worker Kaleigh Ballard, who have discussed the unusual way of running their letting agency with the local media and said their aim is to bring lettings into the 21st century.
At the moment when a tenant wants to move into a property they are likely to have to incur the costs of tenant referencing, costs of drafting up the agreement, further costs for the letting agent conducting a check-in on top of a six week deposit.
“The lettings industry as a whole is facing huge changes across the next 12 to 18 months. It has never been more important for landlords and tenants to realise how these changes will affect them” Reasons has told local outlets.
“The industry has remained the same for far too long and we wanted to offer something completely different to the norm, using the world’s most modern technology and practices, we are aiming to bring the local lettings industry into the 21st century. I think both landlords and tenants will be impressed with what we have to offer alongside our low fees. There isn’t a catch. Our overheads are far lower than any other agency and the technology we use saves us countless time and money, meaning we can pass these savings on to you and the tenants,” he added.
Hampton’s International is also going to try out a no-deposit lettings scheme in four of its offices and with the average deposit in England and Wales at £967 and £1,750 in London this could save tenants a considerable amount of money.