London mayor Tory hopeful Zac Goldsmith has labelled letting agency fees as “almost like a scam”. He also said new technology could soon make agents redundant.
Speaking to his local paper, he said that if elected he will tackle fees, along with rising rents, rogue landlords and lack of housing.
Goldsmith, who is MP for Richmond, said letting agents are asking for a deposit equivalent to six weeks of rent.
He said: “You’re not going to get to a point where deposits aren’t needed.
“But the agency fees are still very high – on average across London I think it’s around £330 and I don’t think people get £330’s worth from their agents.
“It’s almost like a scam.”
He went on: “There are a lot of new businesses emerging where apps are being developed which I think very soon will effectively render the agents redundant.”
Comments (13)
Zac Goldsmith says letting agent fees are ‘almost a scam’
I Say
Property Paddy says politicians looking for headlines are “almost a scam”
So yet another ‘observation’ from a meddler who has no understanding of the industry. I wonder if we are getting our ‘monies worth’ out of his salary?
Another story on this site, relates to an ex countrywide director claiming that Foxtons are far and away the best agency in the UK. I have worked for a company with 20 plus offices who want(ed) to be a “wannabe” Foxtons, and then you wonder why politicians jump on the bandwagon of agents doing “jack” to justify their fees!!
Foxtons through their hidden fees have been stealing off landlords for years and their double admin charge of £420 to landlords and tenants is beyond justification. I have been a tenant in London and most agents would not know one end of the tenancy from another…ask them about deposit compliance, who is a relevant person, what is a post contact address and most of them look blankly at you…I know plenty of agents who don’t even understand their own agreements (and to be honest do not even read it) so how can they justify a £150 tenancy agreement fee is a fair question.
One government will end up banning fees, so you will need to get your house in order to deal with the loss of such income
I just wonder how the likes of these agents find stupid landlords prepared to be ripped off – particularly when such agents get bad publicity.
Just more political clap trap to attract votes. It is so strange how loan companies who advertise on TV can charge in excess of 1000% interest and because the Government take a fee by way of licensing its all just fine; yet in the past they would have been known as loan sharks.
These prize idiots know they do not have the funding to address the housing crisis they have caused by allowing sudden and excessive demand on the housing supply by major and sudden migration into the UK. Over 50% of my tenants are migrants (and they are generally lovely people) but I am sick and tired of being demonized for being a landlord. If you listen to Cameron he is now trying to scare tactics (as he did with Scottish referendum) advising against Brexit but just imaging what is on the cards with hundreds of thousands of migrants uncontrollably pouring into Europe! Stay in and they will have rights to come to the UK. Higher market rents will drive them (the political parties) to introduce rent control which seems to be what Goldsmith is alluding to!
Politicians are using “the best form of defense is attack” to deflect from their incompetence and and impotence in providing the social housing needed. Perhaps right to buy for social housing should not be at discounted rates and ALL PROCEEDS be used for NEW BUILD HOUSING SOCIAL STOCK so re-investment adds to the overall number of dwellings in the area needed. The massive discount Cameron proposes in the great social housing sell of is the “CON in Conservatives”
If we are the 5th richest country why do we have so many people sleeping on the streets and in (appropriately names) Euro-bins! So many food banks whilst CEO’s have obscene salaries. The excuse of course is demand for the right type of people surely the same applies to rents???? supply and demand?
On this morning’s news the predictable political scare tactics that if the UK leave the EU the “Calais Jungle” will come to the UK – well that’s a surprise tactic isn’t it! NOT
When are people going to realise agents are not a charity?
Impressive! an app that can MANAGE to do viewings, property inspections, chase rent, arrange maintenance, sort referencing, ensure compliance with deposit protection, gas safety, alarms and let’s not forget the the loops that can throttle little ones. An app should have no problem to physically check ID.
Looking after property is about MANAGEMENT.
Is he going to vet everyone then for anti fraud and immigration issues. Oh yes, he will be overwhelmed with the task. That would lead to the setting up of a department, they will seek a fee for all of this vetting. I’m sorry I know you are homeless but we have a current backlog of work, we can vet you in six weeks.
I think there will become a time when, never had to work a day in their lives politicians become redundant, certainly.
What does Mr Goldsmith and the rest of his political class do for ‘free’?
Political soundbites from an MP. How very novel.
“Almost” – so ‘not quite’. That’s OK then. This man really is a toffee nosed twit.
Don’t think he knows how agency works.