Lettings fees to be banned
Alex Mackay, co-founder of Mishon Mackay shares his view on the announcement that lettings fees are to be banned:
As a business leader, there’s no denying that the announcement of the draft Tenants’ Fees Bill was disappointing but we must remember the benefit this will also offer to young people looking to rent their first property. In my opinion this isn’t a fair way to regulate this as many fees do just cover costs. This is a situation where we have been penalised by the greedy few.
Throughout my 30 years at Mishon Mackay, I’ve been a strong believer that the industry needs fair legislation surrounding letting agent fees. The industry needs to be accountable and transparent to the various stakeholders involved in the letting process.
For those considering buy-to-let investments there will be some initial concern about the impact this might have on them. However, on the flip side, landlords will continue to receive their expected yield, especially if they are adding to their existing property portfolio.
The lettings market has seen many changes over the years and has remained in a strong position throughout tough economic times. Understandably, we have some areas to consider over the coming months, but I’m optimistic that this legislation will move the property market in the right direction.