How to keep house prices low for generations to come

[Ramrod]

Originally Posted by Mr K

Another classic from the Chancellor today to help nobody. Getting rid of letting agent fees. All that will happen is rents going up for everybody; do you think he does 'thinking'?

Tricky one......it is silly to put the onus for paying agents fees onto the landlords as that will probably put up rents (though it's claimed that it hasn't in Scotland). On the other hand, some lettings agents are charging stupid money from renters and that needs to change as well.
Then again, it's difficult to cap agents fees whilst by putting the onus for paying onto landlords it might just drive down fees since landlords are probably in a better position to drive a hard bargain on the fees than renters are.
It might be a good idea after all (though as a landlord it's not great-but I have other methods anyway)
On balance, I'd say that what he's done is a good thing

[Osem]

Originally Posted by nomadking

So going from 150,000/year in 1997 to 500,000/year in 2008 isn't a problem?

Not sure where you got that idea. It's a huge problem IMHO as alluded to in my previous post*:

The combination of a rapidly growing population, a small crowded island and all the infrastructure required to support large scale, environmentally sensitive new housing and services isn't conducive to cheap property. There's no way HMG can build sufficient new homes to force prices down significantly in places like the South East

* not to mention numerous others in thread s like the 'unstoppable migration'.

[RichardCoulter]

Originally Posted by Ramrod

Tricky one......it is silly to put the onus for paying agents fees onto the landlords as that will probably put up rents (though it's claimed that it hasn't in Scotland). On the other hand, some lettings agents are charging stupid money from renters and that needs to change as well.
Then again, it's difficult to cap agents fees whilst by putting the onus for paying onto landlords it might just drive down fees since landlords are probably in a better position to drive a hard bargain on the fees than renters are.
It might be a good idea after all (though as a landlord it's not great-but I have other methods anyway)
On balance, I'd say that what he's done is a good thing

It used to be called 'Key Money' and was made illegal in 1977.

It then came back as Letting Agents fees and is being abolished again and quite rightly too.

It's a form of scam to make even more out of desperate people, or if it is covering the agents fees, this is something the landlord should pay.

It would be like a supermarket during a food shortage charging a fee to get in to cover their running costs and advertising.