3rd
Jun 2016
A Private Members Bill is gathering major support in Parliament that will outlaw agents charging tenants fees when moving into new properties; it also contains plans to heavily penalise and get rid of rogue landlords.
The Liberal Democrats peer Baroness Olly Grender, is responsible for the introduction of the Bill as private renters are having to pay ever increasing fees when moving ‘homes’. It has benn predicted that in four to five years time, 20% of households will be renting their residences.
Baroness Grender said: “Agents often levy letting fees on tenants for things which should be paid by the landlord.
“They can be charged registration fees, credit check fees, reference check fees, renewal fees, name change fees, exit fees… the list goes on. Almost all of them are arbitrary and disproportionate. Yet tenants are powerless to do much about it.
She added: “Consumers of private sector housing lack protections. They are often at the mercy of landlords and lettings agents and have little recourse in the case of poor quality or rip-off housing.”
Scotland has already stopped allowing agents to charge tenants letting fees.
The Renters’ Rights Bill will legislate that rented homes are made safer, outlaw unnecessary charges and make public an open register of rogue landlords. More than one in four people under the age of 34 are still at home and sleep in their original bedrooms as leaving their parent’s homes is deemed as too expensive, of which fees are just part of the high costs.
Olly Grender is the Lib Dems lead for their campaign to improve private renters’ rights, she said: “There is a huge amount of support for reforming renting and banning fees, but the people who still need convincing are those on the Government benches,
“It is time for them to recognise the pro-consumer case for taking action, start championing renters and stop rip-off fees once and for all.”
The Bill is supported by Vicky Spratt of the Make Renting Fair Campaign, who said: “We are in the midst of a housing crisis. Frankly I’m surprised it’s not yet called a housing disaster. We simply don’t have enough homes and a buy-to-let boom has trapped more people than ever in the private rental market.”
The Second Reading of the bill is due to go ahead in the middle of the month, accompanied by a demonstration outside Westminster being held by Generation Rent.
The Director of Generation Rent, Betsy Dillner, said: “With a captive market of desperate renters, there’s nothing stopping letting agents from charging grossly inflated fees at the start, middle and end of tenancies. If landlords had to pay all the fees instead, agents would have to start lowering their prices, and tenants would find it easier to move, leading to a much more efficient rental market.”
David Cox, managing director of a lettings agents’ association, said: “Letting agent fees cover the cost of essential items during the lettings agreement such as reference checks, the drafting of the tenancy agreement, and the management of tenancy extension or renewal.
“As a result, if letting agents fees are removed or reduced, these costs will most likely be passed on to the tenant through rent rises.
“There are however some rogue landlords and agents that take advantage of the cost of tenant fees. This is where better regulation is needed in the private rental sector to ensure consumers are not taken advantage of.”
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