Before moving into their new home, renters often get hit with spurious fees supposedly covering administration, inventory, references, guarantors, deposit protection, maintenance charges and credit checks. Then letting agents find other excuses to charge more fees, for example when someone moves in or out of a shared house or at the end of a tenancy.
Not only are the fees extortionate but our ComRes poll in March 2014 found that 30% of renters had been charged unexpected "surprise" fees by a landlord or letting agent.
The coalition government failed to amend the Consumer Rights Bill to ban letting agent fees to tenants, though it did create a requirement for letting agents to publish fees in full. This won't stop desperate tenants being overcharged so the government needs to go further and ban them completely.
Do also check out Shelter's excellent campaign on this and their great video.
Update, June 2016: Baroness Grender has introduced a Renters' Rights Bill which would ban letting fees to tenants. It is due to be examined in a Lords Committee later in the year.
We, the undersigned, call on the Secretary of State for Business to:
- acknowledge that the hundreds of pounds tenants have to pay letting agents discourages them from moving out of unsuitable properties, creating a grossly inefficient market;
- acknowledge that because tenants choose homes based not on the letting agent but on the rent, location and condition of the property, transparency over fees is unlikely to drive them down;
- acknowledge that letting agents should only charge fees to their customer, the landlord; and therefore
- ban the charging of fees by letting agents to tenants.