Is the end of the ‘Letting Agency’ just around the corner?

19 October 2012 Categories: News

Is the end of the ‘Letting Agency’ just around the corner?

Shelter’s campaign to abolish all up-front fees charged by letting agents has come under fire from thousands of members of the industry, with the warning that a successful campaign will spell the end of the letting agents as we know them. The charity has already secured a success in Scotland, and now Shelter wants letting agents in England and Wales to follow suit.

Unfortunately members of the industry are not what you would call enthusiastic and are warning that the abolishment of all fees would be disastrous. Jonathan Morgan, who owns and runs Morgans of Leeds, is just one avid protestor to the campaign. He commented, “If there are no fees, agents won’t be able to trade. To ban all lettings fees is crazy – it’s like saying a mortgage broker can’t charge a fee for finding a mortgage.”

He then went on to say, “To talk of outlawing all charges is just not practical as there are significant cost implications for operating a business in the first place, not to mention carrying out viewings, processing applications and general administration that have to be met.”

As an alternative Morgan suggested that all agents sign up to a scheme that requires them to provide transparent fee structures which are disclosed in full before a tenant signs anything.

Either way, whether Shelter will be as successful in their new campaign as they were in Scotland remains to be seen.