Void periods could rise if ban on fees goes ahead
By |Published On: 28th March 2017|

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Void periods could rise if ban on fees goes ahead

By |Published On: 28th March 2017|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Alterations to letting agent fees could well lead to higher rents and greater repossessions, as a result of lesser quality of tenant referencing in the private rental sector.

Insurance provider Endsleigh has raised the concerns, also highlighting fears that if letting agents are banned from charging fees to tenants, the quality of referencing could fall. This is due to agents potentially sourcing cheaper referencing alternatives to offset any future losses of income.


Presently, tenants can be charged fees for a number of administration tasks, including reference, credit and immigration checks. This however looks likely to change as the ban on agent fees comes into force soon.

It is now four months since the ban on fees was proposed by Chancellor Phillip Hammond in the Autumn Statement. Endsleigh fears that this proposal has created confusion in the private rental sector.

David Hadden, head of Endsleigh Let, noted: ‘The private rental sector is currently in limbo waiting for further details on the fee ban but the topic appears to have fallen off the agenda, causing confusion for both letting agents and tenants.’[1]

‘As a partner to the sector, we’re keen for this discussion to move forward so that the letting industry can properly assess and address the likely impacts of these changes,’ he continued.[1]

Void periods could rise if ban on fees goes ahead

Void periods could rise if ban on fees goes ahead


Both referencing and insurance are two areas likely to be impacted upon by the changes, according to Hadden. However, he acknowledges that the scale of this is unclear as the Government decides how best to press ahead with the ban.

Continuing, Mr Hadden said: ‘Our letting customers have told us how concerned they are about these changes and what it means for the private rental sector.’[1]

‘Poor quality referencing could lead to higher eviction numbers and longer void periods. This, in turn, could affect connected insurances such as rent guarantee, with the likelihood of claims to be perceived as increasing, premiums would surely follow suit,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/tenant-fees-ban-could-leave-landlords-facing-lengthy-void-periods


About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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