Financial statement bans letting agent fees

letting-agents-feesIt’s not often that a petition achieves 100% success but today’s financial statement by the government confirms that letting agents will no longer be able to charge fees to tenants.

Instead their costs will be born by landlords.

In an article posted in April we asked York residents to support a petition opposing high fees. 

Nationally over 1/4 million signed the petition which was handed to the government a month ago.

Today’s announcement brings English regulations in line with those that have applied in Scotland for some years.

A third of letting agents in York failing to comply with law

Nearly a third of letting and property agents are failing to comply with legislation despite being advised of new laws and action is being taken, City of York Council’s Executive Member for Housing was told at a Decision Session yesterday (17th October).

The report was accepted and the update given based on officers checking agents to ensure that they clearly display their fees in their offices and on their websites and that they deal fairly with any complaints by landlords or tenants, as part of a drive to further improve the private rented sector.

Last year, all agents in the city were found to be compliant following advice being shared by the council.

Lettings feesThe Decision Session was told that agents which let out homes on behalf of others were checked by officers by visiting their offices and checking their websites. Of the 47 which fall into this category:

  • 15 were found to be non- compliant (32 per cent)

Of those 15 non-compliant agents:

  • Seven were failing to display their fees in the office
  • Four were failing to display their fees on their website
  • Five were failing to display fees either in their office or on their website.

In line with government guidance, all 15 have been served a notice which allows 28 days to appeal or risk a maximum fine of up to £5,000. To date following the notice of intention stage, we have served final notices to two agents, one at the maximum level and other at a reduced level.

To find out more about the laws visit the council’s website https://www.york.gov.uk/info/20097/private_landlords_and_tenants or ring the Housing Standards and Adaptation team on 01904 552300 or email housing.standards@york.gov.uk

York Council to impose new responsibilities on letting agents – and fines for those who don’t meet them

LandlordNew laws to better regulate the private rented sector will be considered by the Executive Member for Housing and Safer Neighbourhoods on 25 August.

The recommendation is to introduce, for the first time in the sector, fixed penalty notices for letting agents and landlords who are found to be deliberately flouting the law.

The new legislation requires that:

  • all letting and management agents must belong to a redress scheme to ensure any complaints by landlords or tenants are dealt with fairly. Nationally there are three approved and government-backed schemes available for managing or letting agencies to join with joining costs ranging from £170 to £350 per annum.
  • all letting agents must display details of all their fees and charges on their websites and in their offices for clarity and to enable landlords and tenants to shop around and promote transparency within the sector. In line with the Consumer Rights Act, all agents must display all charges as well, as well as the redress scheme they belong to.
  • all landlords must install smoke detectors on every storey of every rented property and fit carbon monoxide alarms in every room where there is a solid fuel-burning appliance. From 1 October 2015, all private sector landlords must ensure that there are working detectors at the start of every new tenancy. (Legislation around this for houses in multiple occupation (HMOs) is already in existence.)

Being the enforcing authority, the council’s Executive Member will also be asked to agree how the new legislation will be implemented and set levels of fines that the council can charge for non-compliance. The recommendation is for a maximum £5,000 penalty for each instance of non-compliance and to delegate the power to the Housing Services Manager who will be given discretion to lower the fine in extenuating circumstances.

The council will be working with landlords to ensure that they understand the implications of the new laws and are invited to contact the Housing Standards and Adaptations Service for further advice by emailing housing.standards@york.gov.uk or by telephoning 01904 552300 or by regularly looking for updates on the council’s website www.york.gov.uk

The Decision Session will take place on Friday 25 August at West Offices from 6.30pm and is open to members of the public or is available to watch live online from: www.york.gov.uk/webcasts

To find out more about the report, or to attend, visit: http://modgov.york.gov.uk/ieListDocuments.aspx?CId=875&MId=9040