North East could be 'locked out' of property rental with new government ruling

According to a local estate agency, thousands of people across the North East could be locked out of property rental because of new rules coming into effect this summer.

The Tenant Fees Act 2019, which is the government’s approach to banning letting fees paid by tenants in the private rented sector and capping tenancy deposits, comes into force later this week (June 1).

The move, which will restrict agents and landlords charging tenants lettings fees, could reportedly force many landlords to raise rents to cover losses, says Crook-based letting agents Vickers & Barrass.

Edd Forster, property sales manager, said: “This could make long term rental more difficult for tenants on low incomes who could well see their overall long-term costs increase.

“The new rules may see renters saving initially as they will not be paying administration and referencing cost upfront, but landlords could look to increase rents to recoup costs.”

He added that the new rules appear to be yet another hit for landlords and agents to bear, restricting them further and adding another layer of financial burden.

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