Fees Ban: agents warned to prepare for a flurry of tenant moves

Agents and landlords are being warned to prepare for a surge in tenants moving property once the fees ban kicks in on June 1.

The warning comes from inventory provider No Letting Go which says many tenants will be looking to move to take advantage of the ban on up-front fees and new capped security and holding deposits.

No Letting Go's forecast comes after recent research from The Deposit Protection Service - analysing rent levels - suggested that tenants could be delaying moves between rental properties until the Tenant Fees Act officially becomes law.

"It's no surprise to see shrewd tenants delaying moves until after the fees ban and deposit caps are introduced on June 1" says Nick Lyons, CEO and Founder of No Letting Go.

"The upfront cost of moving between rental homes can be high - particularly in London and the South East - so renters will do anything they can to keep costs down, even if that means putting their move on hold for a few months."

Lyons says the recent dip in activity is likely to herald the opposite effect from two weeks’ time., and he urges agents should partner with respected outsourced suppliers in a bid to make administrative work more efficient in the ‘fees ban era’.

"Tenants are likely to have continued searching for properties over the last few months and will be keen to push their moves through as quickly as possible so they can be settled in their new property for the majority of the summer months" he says.

Lyons suggests that when the five-week deposit cap comes into force, the services of an independently compiled inventory will help prevent landlords’ investments.

"Inventory reports confirm the condition of a rental property at the beginning and end of a tenancy. The presence of this document provides landlords with the evidence to make fair deductions for damage and lost items" says Lyons.

"With the fees ban likely to reduce average deposits in some areas, it’s vital that landlords have peace of mind that their property is protected by an inventory that can support them in the event they need to make deposit deductions."