Letting agents have been accused of profiteering from lack of supply in the private rented sector.
Property website Easyroommate claimed they are responsible for huge rent hikes for flat-sharers and charging “arbitrary” admin fees.
The rental budgets of flatmates in the UK have increased by 27% in the past four year, according to the web portal through analysis of its own data.
Easyroommate said rental prices rose 13% in the second quarter of this year compared to the same period last year.
It said: “As supply continues to dwindle against growing demand, agencies make the most of the trend by bumping up their prices.
“By taking advantage of the lack of supply, estate agents are tearing away any savings that renters could make with arbitrary administrative costs.”
Easyroommate said the Renters’ Rights Bill, which is currently progressing in the House of Lords, should help tenants as it aims to ban letting agents’ fees charged to tenants.
The firm said: “Tackling greedy agencies who let the sector down is a burning question as it could bring more stability in the rental sector.”
The report also found:
- The average number of flatmates looking for every room available in the UK rose from 3.7 in the second quarter of 2015 to 5.3 in the second quarter of 2016
- The majority of UK room-mates are in their twenties, with 27% between the ages of 21 and 25
- 58% of flat-sharers are young professionals while the number of students flat-sharing has gone up 4% from last year
Shame on those letting agents looking to make themselves and their businesses a profit.
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I would like to see a sensible fixed price reference fee for each tenant retained. It is very good at helping to sort out the bogus tenant with no commitment. All that will happen is agents and landlords will be engulfed in the professional tenant, with nothing to loose wasting everyone’s time which will have the knock on effect of raising rents to cover costs.
Stop all tenants fees and cap rents as Labour insist they will do if they ever get back into power will be devastating to the rental stock, landlords will sell up?
Yes I have seen the high fees many agents charge and are monstrous.
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