Letting agent fees are sneaky and should be banned, says Which?

Which? has named letting agent fees charged to tenants as one of four fees that should be banned, as part of its ‘sneaky fees’ campaign.

The others are fees for tickets that you print yourself; BT’s ‘cessation’ charge; and mortgage exit fees.

Of letting agent fees, Which? says that these can be as much as £500, or £300 outside London.

It says that given that landlords general pay admin costs too and that a comprehensive credit reference check costs only £30, “it’s hard not to assume that some firms are simply profiteering”.

Which? argues: “These fees transfer costs to tenants. Landlords already pay letting agents and can recoup this expensive in the rent they charge.”

Its sneaky fees petition has attracted just over 120,000 signatures.

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8 Comments

  1. Votta583

    How is it sneaky if you use an agent that’s transparent you either choose to pay them or not?  Does this mean that they’re going to buy stamp duty?  Because it’s about a sneaky is that!!!

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  2. eltell

    ‘Agents fees are sneaky and should be banned’. . .  and so are business rates but we’re not shouting for them to be banned!

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  3. Will

    I am sure if Which started a petition to “stop charging Income Tax” it would achieve significantly more votes!!!!!  Just another “hanger on” to the Governments Landlord Bashing campaign to deflect from its own lies and failures.

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  4. mrharvey

    This debate is a source of a real dilemma for me.

    On the one hand – agents need to make money, that’s what they’re there for. Good agents do this by doing the best they can and offering a fair price while they do it. Job done. Agents aren’t a charity and they never will be.

    However – people have very little money at the moment. And they haven’t for about eight years. As in every industry ever to exist, there are those businesses who simply squeeze their customers to within an inch of their lives to benefit their own lifestyle, and will do this in whatever way they can.

    However – legislation forces those agents to display their fees so customers know what they’re paying for.

    However – many agents do not display those fees, and by extension are breaking the law.

    However – customers do not know this. They want to find a home and pay as little rent as possible. They don’t know that their local agent is actually being a very naughty boy by not saying what is being paid for.

    However – some agents use this to their advantage.

    However – some don’t.

    The more you look at the ‘fees’ debate the more you start to realise that there are basic breakdowns in communication between business and client, and most of these are down to the basic breakdowns in communication in the modern world.

    I don’t wish sky high fees being charged arbitrarily on anyone. I also don’t want honest businesses to be vilified for generating cash flow. Agents and landlords have a responsibility to lower fees and rents wherever possible, and customers have a responsibility to understand why this isn’t always possible.

    More brain, more heart, from both parties, would soon clear up the nonsense.

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  5. SJEA

    I have seen the quote many times relating to the credit reference of £30.

    I am sure that many firms out there, like my firm take a great deal of time and request as many references as possible to ensure that we have a good tenant going into one of our properties. As such, we should be paid for our time, as until they are in a position to sign contracts, they are not a tenant but simply an applicant. I do agree that there should be a cap on fees before legislation forces this upon the industry.

    Maybe the Which reporter would like to come into my office and process many rental applications and I will happily pay them £30 for processing each of them – let’s see how they will stay in the job !

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  6. StatementOfFact

    There is nothing sneaky about a business charging money for a service. Don’t like it, take your business elsewhere. They should be fair and transparent, just like any other service, but they should not be banned.

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  7. ammik

    That’s my subscription to Which? cancelled!

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  8. ManchesterPaul

    Lets ban vat to drop the price of everything overnight by 20%.

     

    Second thoughts though i hear banks and supermarkets and car manufacturers all charge more than the cost of production for their goods and services, its blatant profiteering and should be banned.

     

    When did profit become a bad thing? Its what keeps a roof over ones head.

     

     

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