A ban on letting fees has come into effect, meaning the cost of renting is about to become cheaper – right? Wrong… living costs are likely to go up and it’s likely the letting fee will now just be built into rents.
The Government was universally warned this would happen, not just by the industry but its own officials.
The Ministry of Business, Innovation and Employment (MBIE) warned the fees may be recovered through higher rents, and Treasury warned the same.
The Government is trying to make renting easier, but tenants are seemingly no better off.