Pavilion Relocation Ltd, 80-83 Long Lane, London EC1A 9ET

Call: +44 (0) 1892 257 001

House boards To Let- Tenant Fees

A ban on Tenant Fees is expected to be introduced in the Spring of 2019, but this doesn’t mean that the cost of renting will come down. Lettings agencies are looking at ways to make up for the lost income, and some of the plans could leave renters and landlords worse off.

What is the tenant fee ban?
The government announced plans to ban tenant fees in 2016 and introduced the Tenant Fees Bill. It is now going through parliament. Renters pay an average £223 in fees for each tenancy, according to the English Housing Survey. Yet lobby groups, such as Shelter and Which?, say that some agencies are charging up to £500 to carry out referencing or £200 to draw up a contract. These charges will be prohibited and tenancy deposits will be capped at six weeks once the ban is introduced.

ARLA Propertymark, a trade body, says that the ban could be detrimental to tenants and the wider economy because the loss of income from fees will result in job losses at estate agencies and extra charges for landlords, who could raise rents.

Increased costs for landlords.

As Adam Walker pointed out last month in The Negotiator many let-only businesses seem destined to fail, as when they started up they did not want the extra hassle of managing properties and therefore encouraged landlords to instruct on a let-only basis.  As they could not make profits from their landlords alone they introduced charging extortionate fees to tenants. In contrast the long established managed letting agencies with a better service charged higher fees to Landlords for managing the properties. However the fees for the tenants in both scenarios are on average the same amount. Therefore with the tenant fee ban managed businesses are likely to pass on the extra percentage that they charge the tenants on to the landlords who in turn will charge higher rents to cover this. The let only agencies will only receive the fees charged to the landlord and are therefore likely to lose out. Indeed Adam Walker commented this month that let only businesses may face liquidation leaving landlords facing huge losses as these agencies will run up a client account deficit half from the landlords, half from the tenants. A change to their business model to recover these fees, say by offering rent guarantee insurance, from Landlords is likely to mean landlords charging higher rents.

Currently both types of  agencies charge tenants for referencing and writing rental agreements. As mentioned these costs are likely to be passed on to landlords, who are already dealing with extra stamp-duty charges and the scaling back of mortgage interest relief, so it could also harm investment in buy-to-let.

With agencies working for their landlord client only future tenants could find it much harder for these letting agencies to co-operate with them for viewings and referencing etc. Whatever the situation it does not necessarily look good for tenants.

Contact the home finding specialist at Pavilion Relocation for help in looking for rental property on 01892 257001, we can also provide the latest information on Tenant Fees.

Photograph of Rose Hill School and Grounds.

Rosehill Prep School, Tunbridge Wells, an update:

We were invited to revisit Rosehill Prep School in Tunbridge Wells to meet Head Emma Neville who joined in 2017 and is brimming full of exciting ideas for the school.  The energy and enthusiasm of the pupils and staff was the overriding impression we came away with.

Rose Hill is a co-education day school, hidden away in central Tunbridge Wells. It is a deceptively large school surrounded by beautiful grounds covering 15 acres, it has great sports facilities and modern classrooms. There are 300 pupils ranging in age from 3 to 13.

As one of the oldest prep schools in England, Rose Hill has a long and interesting history. It first opened its doors in 1832 and the original site was situated on London Road in Tunbridge Wells. In 1966 the original site was sold for development and the head, Jack Grange having already found the new grounds in Culverden Down in 1951 proceeded to raise funds to develop the sports grounds and build a modern new school which was ready to go in August 1966.

Children learning through creating outdoors
Learning is fun, children exploring the great outdoors

It has maintained its excellent reputation for academic and sporting achievements over the years.  We are confident it will continue to do so for the foreseeable future as it continues to move with the times and has started its own forest school and the children spend plenty of time outdoors.

Their latest addition to the school is their wonderful indoor swimming pool which opened only last year and is now in full use for lessons, galas and relaxation.

Children swimming underwater
Children enjoy their swimming lessons

We’d highly recommend any parents looking to relocate to Tunbridge Wells or nearby to visit Rose Hill  School.  Limited spaces are available in a number of the year groups and the Head is always open to discussing placing new pupils whenever possible.

Please contact Amanda on 07944 305921 or Anji on 007748 682818 should you require help with your school search and we are happy to discuss the relative merits of schools in the area of your choice as we visit the schools on a regular basis in both the Independent and State Sectors across London and the south east.

Views of London and cities and towns throughout the UK from our short term rental properties

Hidden Rotherhithe, London, SE16

 

One of our latest client’s were moving from Ireland to London and had showed an interest in the Rotherhithe area. They wanted to find an apartment which was within a stones throw of London Bridge, somewhere they could cycle to work and yet still be able to enjoy a good nightlife.

 

We suggested Rotherhithe as it is a quiet, leafy part of South East London with many apartments many of which have great river and/or city views. It has excellent links to London Bridge via bike, train or river and there are plenty of local shops, restaurants, a cinema complex and shopping centre nearby. It is also very close to Bermondsey with all that has to offer

 

Following on from our in-depth search we selected over 20 properties which we felt sure would appeal to a young professional couple. They did and they liked them all so we prepared the viewing schedule and took them out for a full day’s viewing. We covered a number of areas including Waterloo, London Bridge, Bermondsey and Rotherhithe. As always the day had its usual highs and lows with properties being taken before we could view them but we managed to replace them with new, and we thought, often better apartments. In the end they decided to take an amazing penthouse apartment with a view of the Shard. It had a wrap around balcony which we feel sure will be great for entertaining.  Inside was bright, spacious and modern with 180 degree views.

 

They moved in last week-end and we sent them a welcome box with all the essentials to be there when they arrived alongside their own personalized information and orientation pack to help them find their way around the area.

 

We hope they enjoy their new home and settle into life in London. We would love to hear from you if you are thinking of moving to London or the South East and require help with your relocation. Please call either Amanda on 07944 305921 or Anji on 07748 682818 for further information.

View of London with the Shard dominating the scene.

London’s new capital of cool is in Bermondsey, particularly we noticed during the summer months when we have moved several young professionals into this part of London. Its popularity is increasing as it offers so much and is so close to the City.

Bermondsey- Young, vibrant, affluent and arty.

The recent moves we have made into Bermondsey reflect a life-style that young professionals are looking for when moving for the first time into London. With views of the River Thames and The Shard Bermondsey is fast becoming one of the coolest postcodes in London. With Maltby Street Market which opened in 2010 offering gourmet food, fresh produce and lots of trendy bars and where you can up on Asian Iced coffee at Beanbag this is a place for the both the locals and weekenders to flock to.

Apart from a stroll along the river- you can walk to work in the City in 30 minutes- you can enjoy the unsung Southwark Park, whose 63 acres of parkland belie the urban image of Bermondsey which lets face it 20 years ago was an unlikely South East London backwater.

You can also chill out and get some culture at the White Cube gallery which is a delightful contemporary gallery with a sister one in Hong Kong. There is also the Fashion and Textile Museum and Kino Bermondsey which also provides open- air screenings.

Families are discovering the Victorian terraces south of Jamaica Road. According to OFSTED there are three outstanding primary schools, Boutcher C of E, Riverside Primary and St Michaels RC College which all feature in the Sunday Time Parent Power League. If you don’t want to buy, but try- The Grosvenor Group plans to create 1500 rental homes in what was once a Peek Freens biscuit factory

Contact either Anji on 07748 682818 or Amanda on 07944 305921 for help in looking for a home.

Change in Tenancy regulation

Further to our article last month on the potential legal change to tenancies,  namely to Assured Shorthold Tenancies, (AST’s) we wanted to expand the discussion further in the light of some very sane comments made by Frances Burkinshaw in The Negotiator magazine this month.

She is right when she states that there is a lot of discussion about a minimum “three year tenancy” being bandied about to help to provide tenants with security of tenure and to reduce the fear of having to leave after only a six month period. Despite the trend to issue an AST for a minimum of six months under current legislation there is no minimum term and no maximum term for an AST. The six month minimum is a fallacy brought about by years of bad advice. A landlord can serve a tenant once four months have elapsed to regain possession at 6 months. This does not mean however that a tenant cannot have a three month AST and leave at the end of that- it has just become perceived practice to have a minimum 6 month AST as many agents have these drawn up ready to be signed .

This all started in a different era when tenants were not planning on a long stay- just something to tie them over whilst house hunting. As house prices rose and buy-to lets created a completely new market appeared but still the six-month tenancy was the norm for most agents and landlords. Then as is now both the landlord and tenant can negotiate longer lets- say of three years. If a landlord has a good tenant he will not want him to leave- voids can cost money after all!!

On the other hand it is good for both parties to bring the tenancy to an end if it no longer suits their need.

Perhaps we should think about continuing to live with the current legislation but use it sensibly and in everyone’s best interest.

For help in finding a home please call Anji on 07748 682818 or Amanda on 07748 305921

 

 

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Get in Touch-London

  • Telephone

    +44 (0) 1892 257 001

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    80-83 Long Lane, London EC1A 9ET

  • Email

    info@pavilionrelocation.co.uk

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