Autumn statement: Letting fees are awful, and Philip Hammond is right to ban them

Chancellor Philip Hammond enjoys a private joke somewhere in the Autumn Statement. Image: Getty.

A tragedy, in one graph:

Isn’t that awful? Isn’t that the saddest thing you’ve ever seen? A universally adored brand like Foxtons, losing a tenth of its value in an hour off the back of one bit of bad news? It couldn’t happen to a nicer firm. Perhaps it’s time for the inaugural CityMetric Christmas appeal.

Or we could not do that, on the grounds that banning letting agents fees is a thoroughly good thing, and estate agents are awful.

The move, which chancellor Philip Hammond is announcing in today’s Autumn Statement, will bar lettings agents in England and Wales from demanding tenants pay whatever fees they happen to feel like. (Those in Scotland are already barred from doing so.)

Lettings agents do have costs, of course: reference checks, credit checks, repairing the deliberate damage passers-by do to those minis in examples of what are basically hate crimes. In future, though, they’ll have to recoup them through landlords, rather than tenants.

The whiny, kneejerk, “pro-business” critique of this policy runs as follows. Any attempt to interfere in the operation of the free market will necessarily harm the weakest participants in that market. If letting agents pass their costs onto landlords, landlords will in turn pass them onto tenants. Ergo, the real victims of any attempt to stop lettings agents from torturing tenants any way they happen to feel like it will be tenants themselves.

This critique is, of course, a steaming pile of horseshit, spread about by the sort of people who have no shame about publicly announcing that they’ve not thought very hard about this and probably aren’t actually that clever. For one thing it’s obviously ridiculous. They’re banning parasitical middle men from demanding hundreds of pounds with menaces from renters whenever they have to do some photocopying – and you think that will actually harm renters? Are you high?


But no, let’s be fair to them and destroy their argument using actual logic. Yes, lettings agents do have costs. But there is no evidence that the fees they charge reflect those costs. Occasional CityMetric contributor Alex Parsons put together a report on this, available on the website lettingfees.co.uk. He found that the cost of new tenancy agreements varied from £48 to £450.

Administrative costs clearly don’t vary by a factor of 10: some of those letting agents are charging inflated fees, not because they have to, but because they can. By the time the fee is due, most tenants will have committed to their new home: the agents have them over a barrel. They’re price-gouging, and they should stop.

But there are legitimate costs, of course. Won’t these be passed onto tenants in higher rents? Very possibly – because, while the availability of property won’t change, the availability of money to pay for it will.

Even this is no bad thing, though, since at least they will be passed on consistently. At the moment it’s impossible for tenants to compare the real price of a new home, because are not shown in the advertised rent. Banning letting fees will introduce a much needed measure of transparency to the market.

There are other benefits to a ban. The added costs are likely to be more managable if paid as part of the rent, rather than in a single, upfront lump. It also means an end to unpredictable extra fees, when individual tenants leave houseshares or contracts otherwise need amending.

But if you’re still not convinced, there’s one more way you can tell that the real victims of this policy will be estate agents, rather than tenants. It’s this:

There is a reason that has happened: investors think this policy means that less money will now be going to Foxtons.

It’s a tragedy. A real tragedy, I tell you.

Jonn Elledge is the editor of CityMetric. He is on Twitter, far too much, as @jonnelledge.

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What’s up with Wakanda’s trains? On public transport in Black Panther

The Black Panther promotional poster. Image: Marvel/Disney.

Black Panther is one of the best reviewed superhero films of all time. It’s instantly become a cultural touchstone for black representation in movies, while shining a positive light on a continent almost totally ignored by Hollywood. But never mind all that – what about the trains?

The film takes place in the fictional African country of Wakanda, a small, technologically advanced nation whose power comes from its main natural resource: huge supplies of a magical metal called vibranium. As is often the case in sci-fi, “technologically advanced” here means “full of skyscrapers and trains”. In other words, perfect Citymetric territory.

Here’s a mostly spoiler-free guide to Black Panther’s urbanism and transport.

City planning

It’s to the credit of Black Panther’s crew that there’s anything to talk about here at all. Fictional cities in previous Marvel films, such as Asgard from the Thor films or Xandar from Guardians of the Galaxy, don’t feel like real places at all, but collections of random monuments joined together by unwalkably-wide and sterile open spaces.

Wakanda’s capital, the Golden City, seems to have distinct districts and suburbs with a variety of traditional and modern styles, arranged roughly how you’d expect a capital to be – skyscrapers in the centre, high-rise apartments around it, and what look like industrial buildings on its waterfront. In other words, it’s a believable city.

It’s almost a real city. Image: Marvel/Disney

We only really see one area close-up: Steptown, which according to designer Ruth Carter is the city’s hipster district. How the Golden City ended up with a bohemian area is never explained. In many cities, these formed where immigrants, artists and students arrived to take advantage of lower rents, but this seems unlikely with Wakanda’s stable economy and zero migration. Did the Golden City gentrify?

Urban transport

When we get out and about, things get a bit weirder. The narrow pedestrianised sand-paved street is crowded and lined with market stalls on both sides, yet a futuristic tram runs right down the middle. The tram’s resemblance to the chunky San Francisco BART trains is not a coincidence – director Ryan Coogler is from Oakland.

Steptown Streetcar, with a hyperloop train passing overhead. Image: Marvel/Disney.

People have to dodge around the tram, and the street is far too narrow for a second tram to pass the other way. This could be a single-track shuttle (like the former Southport Pier Tram), a one-way loop (like the Detroit People Mover) or a diversion through narrow streets (like the Dublin Luas Cross City extension). But no matter what, it’s a slow and inefficient way to get people around a major city. Hopefully there’s an underground station lurking somewhere out of shot.


Over the street runs a *shudder* hyperloop. If you’re concerned that Elon Musk’s scheme has made its way to Wakanda, don’t worry – this train bears no resemblance to Musk’s design. Rather, it’s a flying train that levitates between hoops in the open air. It travels very fast – too fast for urban transport, since it crosses a whole neighbourhood in a couple of seconds – and it doesn’t seem to have many stops, even at logical interchange points where the lines cross. Its main purpose is probably to bring people from outlying suburbs into the centre quickly.

There’s one other urban transport system seen in the film: as befitting a major riverside city, it has a ferry or waterbus system. We get a good look at the barges carrying tribal leaders to the ceremonial waterfalls, but overhead shots show other boats on the more mundane business of shuttling people up and down the river.

Transport outside the city

Unfortunately there’s less to say here. Away from the city, we only see people riding horses, following cattle-drawn sleds, or simply walking long distances. This is understandable given Wakanda’s masquerading as a developing country, but it makes the country very urban centric. Perhaps that’s why the Jabari hate the other tribes so much – poor transport investment means the only way to reach them is a narrow, winding mountain pass.

The one exception is in freight transport. Wakanda has a ridiculously developed maglev network for transporting vibranium ore. This actually follows a pattern seen in a lot of real African countries: take a look at a map of the continent and you’ll see most railways run to the coast.

Image: Bucksy/Wikimedia Commons.

These are primarily freight railways built to transport resources from mines and plantations to ports, with passenger transport an afterthought.

A high-speed maglev seems like overkill for carrying ore, especially as the film goes out of its way to point out that vibranium is too unstable to take on high-speed trains without careful safety precautions. Nevertheless, the scene where Shuri and Ross geek out about these maglevs might just be the single most relatable in any Marvel movie.

A very extravagant freight line. Image: Marvel/Disney.

Perhaps this all makes sense though. Wakanda is still an absolute monarchy, and without democratic input its king is naturally going to choose exciting hyperloop and maglev projects over boring local and regional transport links.

Here’s hoping the next Black Panther film sees T’Challa reforming Wakanda’s government, and then getting really stuck into double-track improvements to the Steptown Streetcar.

Stephen Jorgenson-Murray tweets as @stejormur.

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