It has been a tumultuous week for the housing market, as it has been for many of Britain’s industries and sectors. Theresa May has finally managed to undergo the Queen’s Speech after delays, but the “strong and stable” government that was promised appears more fragile than ever before. Nonetheless, the delivered speech held a number of the Conservative’s intentions for the new government, many focusing on Brexit, and a certain number holding importance for the housing market.
One of the most important points of the speech was that, as quoted in the speech, “Proposals will be brought forward to ban unfair tenant fees, promote fairness and transparency in the housing market, and help ensure homes are built.” This refers to a new Tenant’s Fees Bill banning Lettings Fees, which will stop tenants having to pay money to agents. Announced by the Conservatives, this measure has been seen in every major party manifesto, so was a measure almost certain to pass. The average amount paid in lettings fees currently is £223, according to government figures, and Chancellor Phillip Hammond has said previously that 4.3 million households have to pay this fee each year. However, the housing charity, Shelter, has found that the average is not the price everybody pays. One in seven have complained about fees up to £500, with some London tenants complaining of fees up to £2000.
Despite objections from ARLA Property mark, which represents letting agents, claiming that landlords could lose up to £300 million and would raise rents as a result, the government will be moving forward with the bill “later this year.” The government also claims that it will make the process more transparent due to the widely varying rates that renters are currently paying.
Another major point was the High-Speed Two Bill authorising the second leg of the HS2 rail link from Birmingham to Crewe, a move that will negatively affect housing in the routes path, but the areas that the rail link has as destinations will see positive growth as more accessibility is opened up and commute to Britain’s major cities is improved upon. Though it remains to be seen the extent of the impact from HS2, it will be a major shift in various areas of the country.
Founder and CEO of eMoov.co.uk, Russel Quirk, has commented on the speech, saying “The government yet again are setting out to revitalise their approach to housing, only for us to look back come the next occasion and realise that the previous hype and hot air has evaporated with no tangible action what so ever.”
Unconfident in the government’s very familiar promises, he continues “Where housing is concerned at least, these events have become little else than soothing platitudes for the masses, akin to a Marie Antoinette type approach. But the cake never comes. Promises to address unfair tenant fees and promote fairness, transparency and prosperity in the housing market while building more homes, are worthy intentions indeed but ones that are all too familiar yet remain unsolved.”
- Selling a House in a Trust After Death: What You Should Know - April 18, 2024
- Maximising Your Home’s Potential: The Ultimate Renovation Checklist - April 16, 2024
- Key Tips on Managing Your Property Portfolio - April 16, 2024
