An MP has presented a petition to the House of Commons calling for letting agents’ fees to be capped.
Helen Hayes, the Labour MP for Dulwich and West Norwood, presented the petition signed by 1,480 of her constituents.
Hayes told MPs that letting agents charge “very high fees” to her constituents and that it is “a huge issue”.
The text of the petition reads: “Tenants in the private rented sector in Dulwich and West Norwood have to pay high fees to letting agents; further that there is no limit to the amount lettings agents can charge; further that the Government should take action to address the difficulties faced by tenants in the private rented sector, particularly in London; and notes that an online petition on a similar matter has been signed by 1,480 individuals.
“The petitioner therefore requests that the House of Commons urges the Government to consider capping the fees that letting agents are permitted to charge.”
At last! A sensible approach to the problem….
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And I understand that a well known coffee shop charges up to four quid for a coffee whilst a whole jar of coffee can be purchased from a well known German supermarket for just two quid! Scandalous, how dare they! This issue of businesses making a profit has to stop, time to table a motion in The House making it illegal to make a profit or employ staff – plenty of money in the public purse to pay out dole money! And whh not let the local council run allmthe closed down coffee shops, letting agencies, garages, car show rooms et al with convicted criminals?
I think I’ll stand as an MP!
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Fat Cats comes to mind at your response Jeremy. The petition is for costs to be capped not scrapped. Will – vulnerable tenants may not have the choice. We landlords have a duty to care.
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Kandrew12,
I agree Landlords must act responsibly and choose their agents with care.
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I think you’re missing the point, Jeremy. No one is against profit making. What people are against is opportunism. Yes, cups of coffee are expensive but, as you say, you can just buy a jar of granules and make your own at home. But everyone needs somewhere to live and, with the majority of first-time-buyers struggling to put together a deposit, they have no choice but to rent and, generally, through an agent.
The reality is that agents’ lettings fees are a complete fabrication. The cost of replicating the same contract is negligible, referencing is cheap. Without wishing to be hyperbolic, it’s pretty much just a ransom for the keys. Won’t pay? Don’t move.
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You make a good point to begin with then spoil it…. whether they realise it or not (and experienced ones do) landlords dictate what we as agents charge to tenants. Management business does not pay well, a letting agent will only see a return worthy of the hassle/headaches from the additional charges. Landlords increasingly put the onus on the agent to charge the tenant for all the work involved in setting up a new tenancy.
Thats right the extortionate ever rising portal costs, the car costs to go to viewings, the time required to carry out the labour intensive vetting and condition statements in and out. The compliance paperwork and box ticking on and prior to move in. Do those without experience realise how much is now involved? Will my landlords pay for all of that cost when they know that the tenant is getting a benefit and therefore also has an obligation?
I agree with capping sensibly, but then shouldnt we look at other professions that are ‘required’ and cap them? The legal profession anyone? Aaah but most MPs are/were one, or are married to a lawyer……
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If we have agents who are making excessive charges then they will drive the change that is being demanded and wreck business for the majority of agents who do not make excessive charges. The people protesting should take direct action and refuse to use such agents who are unreasonable with their charges. This would in turn drive landlords to use more responsible agents without the need for more “lunatic legislation”. The Government and councils are part of the cause insofar as they are not providing the social housing and if you cause a starvation of housing then the less desirable profiteers (like some councils such as Croydon) step in to “make hay whilst the sun shines”. However, if you want to see a demonstration of how to rip off the public look no further than Councils (run by the political parties who invoke new laws) ripping off everyone with money making schemes like excessive parking charges, whole borough licensing fees, high planning charges etc the list is endless. You get a lesser fine for a crime than parking illegally – says a lot! At least this petition is not quite so madcap as Shelter.
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Nice to see while we have effectively no prime minister or leader of the opposition. While leadership races will dominate both parties and a likely election to follow. While we have yet to serve article 50 and neither party have even prepared us a manifesto on dealing with our exit from Europe. MP’s can still debate the really important stuff like rents in Dulwich.
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It’s pretty important if you’re a tenant in Dulwich
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It’s one question I am never asked by Landlords – how much do you charge my potential tenants and will your fees potentially dissuade them from applying for my property ?
If more Landlords asked this question, maybe market forces would limit the up front fees without further legislation.
When will MPs realise that we are a business and our costs need to be covered and we are here to make profits and thus pay taxes.
I think is it another MP just trying to grab headlines by pounding easy the targets – Landlords and Estate Agents !
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I think there is an issue here. I think that a large number of landlords have no idea how much their agents charge. Sometimes it is so high that it must put off tenants therefore increasing the void period. Maybe landlords should have to sign off the agent charges.
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Excellent point. Guilty as charged. Off to correct that now!
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