'Bristol Res' Blog • 04 April 2019
Following confirmation earlier this year that the Tenant Fees Act 2019 will come into force on the 1st June 2019 the government has finally got round to publishing guidance notes for landlords, agents and tenants.
This weeks publication of the Guidance Notes confirms the wholesale changes the letting industry is about to experience to the current fee structure. Where tenants have previously been responsible for paying their costs associated with renting a property the government is legislating that agents and landlords can no longer make those charges to them.
The government says the Act aims “to reduce the costs that tenants can face at the outset, and throughout, a tenancy, and is part of a wider package of measures aimed at re-balancing the relationship between tenants and landlords to deliver a fairer, good quality and more affordable private rented sector.”
Experts within the industry however see the natural outcome of this legislation to be a reallocation of the fees. Agents who will be required to provide the same service will have to recoup their lost income from landlords – through higher letting & management fees, and landlords who will have to ensure their investment still works for them will need to recoup their costs – through higher rents.
Some landlords who feel they wont be affected by this because they usually find their own tenants and absorb these costs will however suddenly find very few applicants applying through mediums like Gumtree. The advantage of an applicant applying direct to a landlord in order to save costs will no longer exist and the applicant will find using an agent who offers a range of properties under one roof a much simpler and safer option.
The Bristol Residential Letting Co has been working on life after the ban for a number of months and following the publication of these Guidance Notes we are now finalising our reallocation of fees plan. We will be writing to all landlords whose properties are under our management to explain how this will affect them before the end of April.
To view the guidance for yourself please click Guidance Notes – Tenant Fees Act 2019.
Just lettings, just Bristol
Last year Bristol was chosen to be one of two new creative hubs for Channel 4 as it moves its head office from London to Leeds later this year. Following that decision excitement has been surrounding where in Bristol it would locate effectively opening a new ‘ creative quarter’ in the city. A couple of weeks ago, Channel 4 announced Bristol would be home to its drama commissioning departments, whilst Glasgow the other hub winner , would host the factual side of the channel’s output.
Earlier this week Channel 4 confirmed it is in advanced negotiations with Cubex about leasing 3,200sq ft of space on the second floor of the Fermentation Buildings at Finzels Reach.
Overlooking Bristol’s Floating Harbour, the Fermentation Buildings are part of the brewing history at Finzels Reach, which has been home to several famous breweries over the years, most recently Courage Brewery before it closed in the 1990’s. Finzels Reach is a new community being created in the heart of the city by developer Cubex with funding from Palmer Capital.
It features new homes, work space, a hotel and leisure space, transforming an area that had been previously closed off to the public for over 200 years. Around 2,500 people will be living and working at Finzels Reach by the end of the year.
Jonathan Allan, Channel 4’s Chief Commercial Officer said: “We looked at a number of different sites in Bristol, but the Fermentation Buildings stood out for us as offering both a great location at the heart of the city in reach of transport links, and an historic industrial building with superb facilities on hand for our staff. We’re on track and incredibly excited to be opening our Creative Hub in the city this autumn.”
Just lettings, just Bristol