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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“You don’t look like a train buff”: on sexism in the trainspotting community

A female guard on London’s former Metropolitan Railway. Image: Getty.

I am a railway enthusiast. I like looking at trains, I like travelling by train and I like the quirks of the vast number of different train units, transit maps and train operating companies.

I get goosebumps standing on a platform watching my train approach, eyeballing the names of the destinations on the dot matrix display over and over again, straining to hear the tinny departure announcements on the tannoy.  I’m fortunate enough to work on the site of a former railway station that not only houses beautiful old goods sheds, but still has an active railway line running alongside it. You can imagine my colleagues’ elation as I exclaim: “Wow! Look at that one!” for the sixth time that day, as another brilliantly gaudy freight train trundles past.

I am also a woman in my twenties. A few weeks my request to join a railway-related Facebook group was declined because I – and I quote here – “don’t look like a train buff”.

After posting about this exchange on Twitter, my outrage was widely shared. “They should be thrilled to have you!” said one. “What does a train buff look like?!” many others asked.

The answer, of course, is a middle-aged white man with an anorak and notebook. Supposedly, anyway. That’s the ancient stereotype of a “trainspotter”, which sadly shows no sign of waning.

I’m not alone in feeling marginalised in the railway community. Sarah, a railway enthusiast from Bournemouth, says she is used to funny looks when she tells people that she is not only into trains, but an engineer.

She speaks of her annoyance at seeing a poster bearing the phrase: “Beware Rail Enthusiasts Disease: Highly Infectious To Males Of All Ages”. “That did bug me,” she says, “because women can enjoy trains just as much as men.”


Vicki Pipe is best known as being one half of the YouTube sensation All The Stations, which saw her and her partner Geoff Marshall spend 2017 visiting every railway station in Great Britain.

“During our 2017 adventure I was often asked ‘How did your boyfriend persuade you to come along?’” she says. “I think some found it unusual that a woman might be independently interested or excited enough about the railways to spend sixteen weeks travelling to every station on the network.”

Pipe, who earlier this year travelled to all the stations in Ireland and Northern Ireland, is passionate about changing the way in which people think of the railways, including the perception of women in the industry.

“For me it’s the people that make the railways such an exciting place to explore – and many of these are women,” she explains. “Women have historically and continue to play an important part in the railway industry – throughout our journey we met female train drivers, conductors, station staff, signallers and engineers. I feel it is important that more female voices are heard so that women of the future recognise the railways as a place they too can be part of.”

Despite the progress being made, it’s clear there is still a long way to go in challenging stereotypes and proving that girls can like trains, too.

I’m appalled that in 2019 our life choices are still subjected to critique. This is why I want to encourage women to embrace their interests and aspirations – however “nerdy”, or unusual, or untraditionally “female” they may be – and to speak up for things that I was worried to speak about for so long.

We might not change the world by doing so but, one by one, we’ll let others know that we’ll do what we want – because we can.