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NALS created the Fair Fees Forum to bring industry, trading standards and consumer groups together to discuss the creation of a fair fees charter for the private rented sector, and look at alternatives to an outright ban.
The Forum’s Working Group will now work together to consider fees and ensure agents are still paid for the work they do setting up a tenancy, while looking at a way to curb the fee excesses that may have crept into some parts of the market.
1. The NALS Fair Fees Forum met in London on Monday 14 November 2016, to discuss the issue of upfront letting agents fees, and possible alternatives to an outright ban.
2. The Forum brought both industry and tenant groups together in, what is believed to be, the first forum of its kind about this controversial issue.
3. The morning session (“The Agent Group”) included delegates from major letting agent and property management firms including Belvoir, Chestertons, Foxtons, Hunters, Leaders, Northwood, Portico, Savills, Society, Spicerhaart, Touchstone, and Winkworth.
4. The Agent Group exchanged information on fee levels and models. They agreed unanimously on the absolute need for fair, justifiable and transparent fees.
5. The Agent Group also agreed that excessive fees should be curbed.
6. The Agent Group agreed that in preparing the rental contract and as part of the rental relationship the agent provides a service for the tenant that they should be able to charge reasonably for.
7. The Agent Group agreed an outright ban would negatively affect the market, and discussed the law of unintended consequences, such as higher fees, fees being hidden or passed on to the consumer in another form, a drop in standards and/or the closure of some agencies.
8. Consensus was reached that the industry needs to speak with one voice and that it should be pro-active.
9. The Agent Group agreed that common ground should be sought with tenant-focussed groups in a collaborative manner.
10. The afternoon session (“The Forum”) was a larger gathering including representatives from British Property Federation (BPF), Shelter, Crisis, Residential Landlords Association (RLA), Greater London Authority, Ombudsman Services: Property, Property Redress Scheme and Department for Communities and Local Government (in listening mode).
11. Robust viewpoints were discussed ranging from support for an outright ban through to a potential cap on upfront fees.
12. There was a clear consensus that further work needed to be undertaken. Not least with regard to the current lack of enforcement for those letting agents who do not explain their fee structure clearly or even adhere to the requirement to display fees.
13. The Forum agreed to the creation of the Fair Fees Working Group. This smaller group will meet to bring forward workable alternatives to an outright ban on all fees.
14. NALS will provide the secretariat for the Fair Fees Working Group.
15. Department for Communities and Local Government will attend in ‘listening mode’ to help inform their thinking on affordability and security for tenants.
16. The first session of the Working Group will meet to explore:
a. Transparency – how to provide further clarity on fees to tenants and the service the agent is providing;
b. Enforcement;
c. What is ‘reasonable’ regarding fees?;
d. Affordability for vulnerable tenants;
e. The outcome of the ban on fees in Scotland.
17. The Working Group will meet within 28 days.
-ENDS-
About the Fair Fees Forum
NALS created the Fair Fees Forum to bring industry, trading standards and consumer groups together to discuss the creation of a fair fees charter for the private rented sector, and look at alternatives to an outright ban.
The Forum’s Working Group will now work together to consider fees and ensure agents are still paid for the work they do setting up a tenancy, while looking at a way to curb the fee excesses that may have crept into some parts of the market.
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For media enquiries only, please contact:
Ellie Irwin / ellie@ellieirwin.co.uk / 07833683281
Steven Hilton / steven@stevenhiltonconsulting.co.uk / 07779604781
