Pressure rises on calls to ban letting agent fees as petition handed to housing minister

An MP has presented a petition at Parliament calling for a ban on letting agent fees.

Tom Brake, Liberal Democrat MP for Carshalton and Wallington, was joined in a protest at College Green, Westminster, by Shelter, Lib Dem peer Baroness Grender and by the online publication aimed at young women The Debrief.

The Make Renting Fair petition with over 270,000 signatures was then presented to housing minister Gavin Barwell.

Baroness Grender has a Renters’ Rights Bill going through Parliament seeking to abolish agents’ fees, while The Debrief has been running the petition.

Brake said: “With renting increasingly becoming the most viable option for not just young people, but also those looking for a more affordable alternative to home ownership, it is vital that we send a message that renters deserve rights.

“Our Bill will call on the Government to make crucial changes to renters’ rights and to stop the exploitation that too often occurs in a competitive housing market.”

x

Email the story to a friend!



13 Comments

  1. Typhoon

    What stupid people  Agents can’t and shouldn’t work for nothing.

    Report
    1. Bless You

      Strange attitude. Who will tenants ring up and moan to, when their light bulb stops working or their child ‘didnt’ rip the plug off the bath. It just happened.

      Report
      1. Bless You

        Also can P I EYE keep this scare mongoring and lettings ‘news’ to at least the ‘lettings’ section. I hate lettings, but people have to somehow stay motiviated in this industry. Its not helpful.

        SALES ONLY PLEASE FRO ME>

         

        Report
  2. James

    A petition for a ‘free lunch’…hardly difficult to achieve. This issue is gathering momentum and, if this continues to a ban, will be a disaster for our industry.

    I predict that Agents / Landlords will refuse to accept Tenant applications unless a Tenant has self- referenced using a creditable referencing agency. Landlords, already hit hard with ever increasing bureaucracy and taxes, will dessert the market.

    Everything points to a reduced supply and we all know what’s will follow that…the inevitable increase in rents.. Will be then see a petition for a rent cap? I don’t think so somehow.

    I have called for ARLA, NALS to be far more proactive on this issue. Our regulatory bodies need to wake up and go on the offensive immediately…. After all there is no such thing as ‘a free lunch’…

     

    Report
  3. Will

    I feel if Mr Brake did his homework he would find reams of legislation supporting the rights of tenants.  Excessive fees charged by a  small number of agents has works against the rest of the profession driving the support for  extreme legislation to curb the few.

    Report
  4. pierce

    I am in the process of developing a scheme (website) to help tenants find out what they should be paying in fees and see if they are fair. The model is aimed at a percentage of the rent and takes into account them being both inside London and outside London.

    This was borne from an idea I had when speaking to individual agents and the formula has been created with their input.

    I have passed the details to Maria Caulfield MP after she asked for fees to be banned during a parliamentary session some months ago, so I hope it is having some impact on this issue.

    Report
    1. seenitall

      I wrote to Maria Caulfield MP a detailed letter about fees when she wrote to us.  Never heard anything back.  Explained why agents should charge tenants, the issues if we dont and the fact that rents will increase for tenants if fees are banned which will cost the tenants more overall on the examples I gave her.

      But equally as important is the principle of not telling private businesses what they can charge.

      Report
      1. pierce

        I believe she wrote to all agents within her constituency to prepare for her speech in Parliament about banning fees to get feedback. Would have been appropriate for her to reply to you though!

        That said, I have had emails from her acknowledging my emails so I hope I am breaking through the mould 🙂

        Report
  5. andy halstead

    Why stop with Letting Agents, let’s go the whole nine yards and ban;
    1.      Estate Agent Fees
    2.      Mortgage Broker Fees
    3.      Solicitors Fees
    4.      Accountants Fees
    5.      Debt Recovery Fees
    6.      Bailiff Fees
    7.      Overdraft Fees
    And whilst we are at it, insist that MP’s expenses are signed off by at least 2 of their constituents for each claim.
    We deliver services to the Private Rental Sector, we are not supporting Social Housing or Charities. The average tenant renting in the PRS earns £26,000.00 per annum and if they select a professional letting agent, they typically benefit from a first class service. The unintended consequences of government attempting to manage businesses and markets are significant, look no further than Scotland. Other than in Aberdeen where the oil price has destroyed the market, rents across the PRS have risen exponentially.
     

    Report
  6. Neilw

    Its happened in Scotland its happening in Wales & Ireland……..Agents are still in business. Big change is a more even playing field Agents compete on fees with Landlords which stops them offering the ridiculously low fees charge previously and thereafter making tenant pay.

    Best get used to it…in Scotland new statutory tenancy coming out next year with no tenancy length? Look at your figures for annul income on tenancy renewals to see the effect if this type of tenancy was introduced in England.

    Report
  7. andy halstead

    @Neilw and rents increase, costing tenants far more over the long term……….

    Report
  8. NickTurner

    A lot of kneejerk hysteria above plus  of course some very good and well intentioned constructive points.

    As always a one size solution does not easily fit all but one thing is quite clear is that there are some agents charging a substantial excessive amount to prospective tenants and it is a very good source of income compared to what it actually costs to pay the referencing company. Away from the capital where salaries and emplyment remuneration is substantially less for a tenant to have to pay out hudreds of pounds is a great chunk of money for the prospective tenants and is it now fair that we consider the tenants side for a moment or more?.

    House prices will continue to rise until the market inevitably corrects itself when interest rates jump  and all this will  continue to put pressure on demand for rented with rents rising. After the depression, after the second world war  – look at what we learn from history.

    What the industry does need is a fairer across the board  fee basis for prospective tenants and agents who consider that offering even lower rates to attract landlords to them will eventually lead them to disaster. Someone will always charge a cheaper rate but the agents who charges a proper rate to landlords AND does an very good professional job because they CAN afford to will succeed. Never kill the fatted calf unless like many letting agents you are a quick fast buck merchante – here today and off tomorrow

    Report
  9. Woodentop

    over 270,000 signatures ….. now where did they get that amount from, I can think of a dozen or so, so the majority must be tenants? Surprise, surprise, unless of course we have people signing who have nothing to do with tenancy and experience on how the system works. Can’t for one minute imagine the signatures came form Landlords or agents. The petition is meaningless if you examine it?

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.