“My letting agent lied to me about the tenants fee ban”
By Samira*
I’m currently looking for a new home. My flat is being sold and my current estate agents aren’t being as supportive as I hoped so I started casting my net wider – looking at properties with other agents.
I’d seen a house I really liked and was chatting through with the estate agent the next steps. That’s when I started to get suspicious: one estate agency said the ban on letting fees was “like Brexit” in that it was being continually pushed back and might not even happen. He told me I shouldn’t wait to sign after 1st June (when the ban comes into force) because the fees ban might not happen and by then I’d have missed out on some really great properties. I left that meeting feeling confused – was he right about the law?
I went to another agency who didn’t seem to know about the Tenant Fees Act at all and gave me the same advice “don’t wait for June 1st, the ban doesn’t exist”. Luckily, I’m not in a rush to move just yet but both agents ran and text me multiple times, pushing me to sign before June.
I was cautious, everyone I know who rents thought the ban was coming in on 1st June, but hearing two professionals deny it made me doubt myself.
So I did my research on the Parliament website and took a look at Generation Rent’s advice and I found out the ban is definitely coming into force on 1st June. It will mean that if you sign a contract after 1st June, your letting agent and landlord will only be able to take payments for:
- Rent
- Security deposit – capped at 5 weeks rent
- Holding deposit – capped at 1 weeks rent
- Early termination payment
- Change of sharer fee (shouldn’t be more than £50)
- Charge for lost keys or security device
- Charge for interest on late rent payments
I’ve lost my faith in agents now. For someone to outright lie about a law they’re obliged to follow, in order to manipulate me into spending hundreds of fees, made me feel let down – house hunting has now become a chore and something I’m not excited about, purely based on how estate agents have made me feel, rather than based on the properties themselves.
The agents followed up with me, texting me 3 days in a row saying I could pay the fees over the phone as soon as I submitted an application. This also seemed kind of suspect, as usually, I’ve applied to properties then had to wait a few days for confirmation that I’m the selected tenant, at which point fees are paid to do referencing. I do wonder if they said I could pay as soon as I had applied, in order to ensure they get as many tenants into their properties before the ban comes in.
I’m so glad that I did my research – it’s likely that I saved myself £400 by not signing that contract – let alone all the future fees I could have been charged for.
If you’ve had an experience like mine then get in touch with Generation Rent. They are putting together a team of volunteers to mystery shop letting agents and make sure they are giving the right advice to tenants. I know not all letting agents are like this but we need to hold the bad ones to account.
To join the mystery shopping team at Generation Rent email [email protected], or join the whatsapp group.
You can also report agents that are misbehaving here
*Samira is a false name to protect the identity of this renter.
Policing the letting fees ban – what we’re up to
The ban on letting fees is coming – from 1 June, renters in England (including licensees and property guardians as well as tenants) will not have to pay fees for admin, references or inventory to move into a new home. Just the rent and refundable deposits.
This should have a huge impact – not only on renters’ finances, but on their relationship with the landlord and agent too. If the landlord isn’t fixing something or is asking for a higher rent, the tenant is in a stronger negotiating position because it is now cheaper for them to move out instead. Faced with the prospect of a tenantless property, the landlord is more likely to capitulate.
But letting agents are a crafty bunch – their ability to invent fees out of thin air is why we’ve got to this point. And many are willing to break the law – our research on lettingfees.co.uk found that 12% of agents weren’t publishing their fees, in breach of the Consumer Rights Act 2015.
Housing isn’t a priority for Boris Johnson. Here’s why it should be:
There was no mention of private renting in the Queen’s Speech today, but it would be a mistake for Boris Johnson’s government to overlook it.
What the next government can do to fix renting – Renter Manifesto 2019
Today we’ve joined up with renters and housing justice campaigners from across England to launch a national renter manifesto in time for the 2019 General Election.
Written by Generation Rent, London Renters Union, ACORN, New Economics Foundation, Renters’ Rights London and Tenants Union UK, the manifesto calls for radical reform of private renting and a transformation of the housing system – including the abolition of section 21 evictions, the introduction of rent controls and an end to discrimination of tenants on housing benefit.
Our General Election campaign
Whatever way you look at it – this General Election is important. The next Government will be tackling the big issues of the day like Brexit, crime, protecting our NHS and fixing the housing crisis. At this election Generation Rent is getting stuck in.
Everything you need to know about the Tenant Fees Ban
After years of waiting, England’s Tenant Fees Ban is finally here. It means that letting agents and landlords won’t be able to charge extortionate fees when you move to a new home. Here are the top 6 things you need to know about the ban:
Fair – Make deposits affordable
Fair
Make deposits affordable
A register of landlords
Safe
A register of landlords
Renter power
Putting tenants in charge
Sign our petition to make renting more affordable
What’s the problem
Rents are too expensive – most of us are paying more than 30% of our income in rent.
For those of us that rely on housing benefit to cover our rent, it’s much worse. Housing benefit rates have been frozen since 2016, meaning that rents are eating into the rest of our income.
Not only does the cost of rent reduce your disposable income, it weakens your position as a consumer – when you’re searching for a new home you’re under pressure to accept the first suitable home you can afford because someone else will take it if you don’t.
Moving home is also expensive – renters have to find £1084 on average for the deposit alone. In many cases they will have that kind of money already – but locked away as the deposit on the house they’re moving out of.
Secure tenancies
Click here to sign our petition
What’s the problem?
Right now families in rented homes can be kicked out with just two months notice – without any valid reason. Some end up sharing a single room in temporary accommodation while others have to move miles away from their children’s schools. It’s unfair and its perfectly legal