<p>We are a small independent lettings agency, like many small lettings companies across the country, we are devastated by the latest assault on our industry. Our agency fees are fair and reasonable and make up a vital part of our cashflow and revenue stream. Whilst trying to grow a business these fees have some months kept us afloat. My business supports 10 households, feeds my staff’s children and this could potentially put us out of business. You think Landlord’s are going to swallow these costs? It’s hard enough to get them to pay them for running repairs, probably because they have been hit from all angles already.</p><p> </p><p>Firstly George Osbourne changes the goalposts on taxes meaning Landlords are treated completely differently to anyone else in any other industry. Where else in the history of business have you been unable to offset legitimate and significant costs against your revenue? The answer is no where. While this impacts predominantly on property owners it filters down to agents too. We are loosing units due to the sale of many buy to lets as landlords scramble to free up capital and get their portfolio’s gearing in order.</p><p> </p><p>Mr Hammond’s latest draconian measure imposed upon us is just another step to desecrate our industry, led by an out of touch Tory government who seem to want to punish small to mid level business and those accumulating a mediocre amount of wealth. All the while Google, Facebook, the Banks and Phillip sodding Green get away with blue murder. It’s a damn right catastrophe.</p><p> </p><p>It’s nearly farcical that the British public have bought this smoke screen of supposedly helping the JAM’s or self-proclaimed generation rent. In addition to the standard market movement I will be forced to raise my rents by at least a further 10-15% across the board when these measures becomes law and so will many others. Not so helpful for those trying to save for a deposit! The real reason behind this move is to take property away from the independents and put it into the hands of big business. Of course you can transfer your assets into the ownership of a limited company but you’ll have to pay SDLT at the newly inflated rate on each transaction based upon current market value. Thanks alot George! Maybe realistic if you’re a multi-millionaire.</p><p> </p><p>We charge a £199 agency fee, no deposit but instead take a guarantor precisely for the reason that we want to keep more cash in our client’s pockets! That and the fact that I have never wanted to engage with the red tape and hassle of the tenancy deposit scheme, another piece of biased regulation. That’s the only fee I charge. Nothing for move out, nothing to supply a reference, nothing to renew a contract like so many of my competitors. But yet I am being tarred with this brush of being an evil letting agent. Why? Because it makes for good headlines.</p><p> </p><p>JAM’s that’s a laugh, JAM’s should be re-named SHAMBELIC’s that stands for “Should Have Made Better Life Choice’s.” I saw one man on BBC news claiming to be a JAM, he wasn’t even 30 and had 5 kids. He’s not a JAM he’s just SHAMEBLIC. Whereas people like myself who have built a business over 8 years or Landlords who have built a nest egg over decades in some cases get the rug pulled out from under them.</p><p> </p><p>Why is it so indicative of our society that we punish our best and brightest, the people that make the country tick? Innovators that drive business and make sensible and progressive choices. Why should we foot the bill for some SHAMBELIC moron who can’t save for a deposit on his own property because he has 5 kids? Then has the audacity to go on national news and complain about it!</p><p> </p><p>If this is how it reads in the FT then seemingly a blanket ban on agency fees is heading our way. While I concede that the industry needs to be regulated and reasonable restrictions put in place on what agents can charge, a blanket ban is nothing short of ridiculous. It’s worked in Scotland they say. So what? Wearing a kilt works in Scotland! The same rules don’t apply here. In Saudi Arabia they cut off peoples hands for stealing food, in America near enough anyone can buy an assault rifle over the counter. Well I don’t want those laws here either!</p><p> </p><p>I mean if the landlord tenant laws were even remotely balanced I could accept these changes more readily. When a tenant is a day late with their rent we should be able to serve a section 8. If you haven’t paid in full within 18 days you need to leave, no court order necessary and we keep your deposit in full. There is a change I would welcome. But no, that would be deemed unfair wouldn’t it?</p><p>Is it not more unfair that sensible people who have invested their hard earned money wisely under one set of parameters this April will wake up in a twisted reality where their investments yield a fraction what they had banked on?</p><p> </p><p>Is it not more unfair that the same people imposing these measures on the middle classes are the people granting tax breaks to the corporations to the tune of literally billions of pounds.</p><p> </p><p>Is it not more unfair that an entire industry is being told what it can and cannot charge for services within a free and competitive market place.</p><p> </p><p>If you want to talk about a corrupt industry lets talk about insurance. How about telling them what premiums they can charge young male drivers? How about not letting them get away with ducking out of paying claims by exploiting loopholes in their policy wording. All the while our good chancellor Mr Hammond further inflates our “insurance premium tax” hitting everyone in the pocket without us even noticing. But of course insurers are owned by the corporations so no one intervenes. It’s the little guys trying to rise up that get smacked back down with the rest of the unruly mob.</p><p> </p><p>Finally just because a handful of corrupt scum bags, predominantly in London, rip people off within the lettings arena it does not apply to an entire industry, not to every business model, nor to every sector of the market place. It’s a sham, it’s a joke and I have to make a stand here. We all have to make a stand.</p><p> </p><p>Please sign this petition and lets take our fight to Parliament. This cannot be allowed to happen.</p><p> </p><p>Kind Regards,</p><p> </p><p><strong>Kristian D Sparrow</strong></p><p>Managing Director</p><p>Vesta Asset Management</p>
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