Will ban on agents’ fees be scrapped due to the election?
The Residential Landlords Association has moved to suggest that the upcoming General Election on June 8th could see the proposed ban on letting agents’ fees being shelved.
It is predicted that the Government could be left with new priorities on the back of the election result, which could see the ban abandoned.
Consultation
Just last week, the Department of Communities and Local Government abandoned the workshops with letting agents-which were previously at the heart of the formal consultation process.
Despite the consultation itself continuing, the abandonment of the workshop has prompted questions in the industry.
Policy Director of the Residential Landlords Association, David Smith, wrote on the organisation’s website: ‘There is now a possibility that the entire policy will be lost if a new Housing Minister has other things which capture his attention more strongly.’[1]
Will ban on agents’ fees be scrapped due to the election?
Delayed
Mr Smith’s warning comes alongside a warning highlighting other issues which could be delayed or scrapped depending on the election result.
One of these is the Homelessness Reduction Bill, which has been passed by Parliament but has yet not received Royal Assent required to become law. What’s more, there are regulations that need to be put in place to set up a database of rogue landlords and banning orders.
Smith said: ‘Regulations were expected shortly to start the process of making this happen and the IT project that underpins the database was also in progress. Again these are now trapped without a Minister to push them forward for the next month…The October deadline must now be in doubt.’[1]
In addition, the Housing and Planning Act included provisions about Client Money Protection becoming mandatory for letting agents.
Concluding, Smith noted: ‘There were no further consultations expected in these areas but there were working group reports which needed approving and regulations were again to be drafted to implement the reforms. Yet again this will be at risk of delay.[1]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/4/fees-ban-whole-policy-may-be-lost-thanks-to-election-warns-trade-body