It seems that never a day goes past without the Government interfering into one business or another.

As if the changes to Stamp Duty Land Tax (SDLT), the 3% extra levy for second property buyers and investors, the implementation of new Anti- Money Laundering and Right to Rent rules had not created enough turmoil in the London property industry, the MP’s without consultation, and in their inimitable style, have proposed a blanket ban on Tenants administration and/or reference fees.

I agree that there is merit to regulate rogue agents who charge the earth for doing little, and ensure that tenants are not ‘ripped off’, but for most letting agents these charges merely pay part of the cost of employing a compliance officer or for the extra administrative time required to ensure adherence to all the regulations.

Had there been any understanding or fulsome discussion regarding the way forward, it would surely have resulted in capping the rates that are chargeable, thereby guaranteeing fairness on all sides.

Perhaps if our Parliamentary Members had ever run a business or been employed in a profit making organisation they would have a clearer comprehension of the real world, but todays career politicians have not even the slightest clue how industry actually works.

To compensate for loss of income agents will most likely increase fees to landlords, or landlords themselves will have to write or employ solicitors to create tenancy agreements costing considerably more than the current amounts charged by most agents. This cost deficit will have to be found from somewhere and most likely this will be by raising rents.

Additionally, there is a shortage of good quality London residential rental stock that will only worsen over the next few years as the changes to the taxation rules for landlords start to bite. It is already apparent that the extra SDLT levy has taken effect, with far less investors entering into property purchases since 1^st April. So with sparse stock, higher tax for landlords, and agents requiring extra fees to cover the deficiency of revenue stream, London rental prices are set to rise.

It doesn’t take a genius to work out the maths.

The real effect may be even more far- reaching as smaller and less established agency’s may find that they are no longer viable enterprises. Staff will be cut even if the businesses remain afloat. Unemployment will increase generating higher levels of state assistance and there will be a loss in tax too as National Insurance funds diminish, profit reductions equate to less VAT, the Corporation Tax stream lessens and the Stamp Duty coffers start to contract further.  Since the frankly ridiculous hikes in Stamp Duty instigated during the Autumn Statements of 2014 and 2015 higher priced London property has suffered considerably. There are already casualties with many of the larger corporates currently shutting branches and combining offices to make savings – so all in all the Governmental measures have created havoc for the property market and do not bode well for the future.

I am a great believer that one must let experts get on with their job. But I have no comprehension why MP’s who have no business aptitude, no business experience and no proper qualification, feel competent to set rules for my industry. Surely a much simpler method would be to enrol a regulatory body comprising residential agency professionals to create accommodating and workable policies.

Published in London Property Magazine January 2017