Campaigning lettings agency chief Ajay Jagota says he is unconvinced by government plans to make it a criminal offence for letting agents to charge tenants fees and to cap tenancy deposits.
Responding to the government’s draft Tenants Fees Bill published this week Jagota, founder of deposit free renting firm Dlighted and campaigner for privately rented property reform, says reforms outlined in the proposed legislaton merely preserves the status quo.
“Renting in Britain needs to change, but I’m not convinced this is the change it needs.
Deposits will still place a huge financial burden on renters at a time when wages are falling but inflation and debt are rising. This burden makes it harder to find and keep tenants, but ultimately does little to protect landlords against property damage and unpaid rent” he says.
“The fee ban is likely to place a major financial burden on letting agents too, which is likely to lead to higher rents and other costs for renters. It’s clear that now is the time for landlords and agents to think about deposit free renting, even if the government has ducked the issue for now” he adds.
“Not only does deposit replacement insurance save letting agents time and money while better protecting landlords and finding tenants faster, it also allows them to differentiate themselves from the competition in a post fees-world.”