‘The road to servitude is paved with government intentions’ as economist Friedrich Hayek might have said. His prophetic ideas are pertinent today, where we are on the cusp of a government ‘initiative’ to ban letting fees. As always with bureaucratic interference, a busybody’s desire to help the ‘vulnerable’ ends up as the economic version of playing the piano with boxing gloves, where the cure can often be worse than the ailment.
Any ‘fule kno’ that agents in response will simply raise their fees, which are usually around 10%, to landlords. The inevitable consequence will be higher rent levels for impoverished tenants. Continue reading