Is it time for ALL estate agents to be regulated by the FSA

Soniclord

Now I don't know IF Estate Agents are regulated by the FSA or not but that might well be down to my ignorance but this has been bugging me for a long time now and I would appreciate input from others as IMO Estate Agents Fees are massively over inflated and something needs to be done about it.

And please don't just post saying but you don't have to pay the fees! Because most people who want somewhere to live actually don't have a choice!

Anyway onto my post.

I've been thinking about this for a long time now and think it's now the time for what I'm about to suggest to you, and as I said I'd appreciate your input on it!

Isn't it about time the FSA started regulating Estate Agents regarding charging monstrous fees for generally doing sweet F.A or if they are already regulated having fees frozen at an acceptable level!

Basically up until February 2011 me and my family had been renting privately, paying a landlord £360 every 4 weeks for a 3 bedroom house in quite a large village. We (well more my other half to be fair) decided to move closer to town to be nearer to family, even though we were only half an hour away on the bus!

Now regarding this private landlord we had, when we moved into the house we paid him £360 rent in advance and £360 for a bond (which we got back when we left) and that was it Total = £720

When renting through the agency we were charged ridiculous fees for essentially sod all!

£125 per person!! For credit checking

Total £250 so far!

£595 for the bond/security deposit

Total now £845

£150 for the preparation of a tenancy agreement, say whatttttt!!!!!!! AKA printing off the same template of tenancy agreements they use on a daily basis no doubt..

Total now £995

£50 admin fee..... What the bloody hell does that entail? Simply printing off a few documents..

Total now £1045

£495 for rent in advance

Total altogether £1540

So private renting through a landlord cost £720 Through an agency including fees £1540 which is £820 more than we paid for the bond AND rent for the other place we had!

So do you agree that such fees are ridiculous, and should Estate Agents be forced to charge a set fee because lets face it we can credit check ourselves for as little as £2 so them charging £125 per person is absolute daylight robbery!

I'd appreciate peoples input as Estate Agents IMO are blatantly taking the wee wee!

Thanks.

Emmzi

http://www.guardian.co.uk/business/2010/feb/18/oft-regulations-estate-agents

The FSA makes no sense at all. Although Estate Agents cost money they do not provide financial services. Their in house mortgage brokers may, but they WILL be regulated. Do you actually mean letting agent?

This is the problem with a free market economy. I suggest moving to a tightly controlled communist nation.

Emmzi

PS your actual agency fees are £450. Your rent is more expensive. Your choice to pick somewhere with higher rent. As a consequnece your bond is higher. Again your choice.

I think you need to tighten up your argument, it is too easy to pick holes in right now.

I don't think £450 is ridiculous, no. A bit high. But not totally obscene. You have the option to rent direct off a landlord again, you just chose not to.

maninthestreet

Emmzi wrote: »

PS your actual agency fees are £450. Your rent is more expensive. Your choice to pick somewhere with higher rent. As a consequnece your bond is higher. Again your choice.

I think you need to tighten up your argument, it is too easy to pick holes in right now.

I don't think £450 is ridiculous, no. A bit high. But not totally obscene. You have the option to rent direct off a landlord again, you just chose not to.

£125 for a credit check!!

iheartbristol

Estate agents themselves do not offer financial advice, they offer a service which you pay for. Different kettle of fish, like Emmzi has said.

GAH

As already said above, Estate or Letting Agencies cannot be goverened by the FSA as they do not offer Financial Advice.

I do agree with you that their are a lot of letting agencies out there that charge huge amounts in admin fees, but it does seem the way of the world now, wait till you have to re-mortgage every two to five years with arrangement fees ranging from £500-£2000 each time.

Unfortunately, in a time like this, went rental properties are in short supply and you find the property you want, you are generally going to have to pay their fees, unless you can negotiate them down.

If it was a market which was flooded with rental properties and less people looking, the agents would probably slash their admin charges and bend over backwards to get tenants into properties.

I think tenants need to do a bit more research before jumping in to rent a property. When initially registering, asking for a copy of Terms and charges, Inventory costs etc. That way it is not so much of a shock when you find a property you like and feel you are getting stung for huge fees.

Being an ex-agent myself I am all for some regulation in the industry, but there is never going to be anyway who canen-force what an agent charges.

Their is currently a huge number of agents out their, offering a number of services and fees, never has their been so much choice.

melancholly

and anyway, the FSA didn't exactly do a great job of regulating the banks, did they?! even if they were relevant, i wouldn't trust them to do it!