MSE News: MPs call for tougher letting rules

Former_MSE_Helen

"'Cowboy' letting agents who behave badly and charge rip-off fees must face tougher sanctions, MPs have urged..."

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MPs call for tougher letting rules



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dimbo61

However, Housing Minister Mark Prisk says: "We're determined to build a bigger and better private rented sector that gives tenants more choice, but we should avoid excessive regulation on the sector which would push up rents and reduce choice for tenants.

"That's why we're taking action to require all letting agents to belong to a redress scheme so landlords and tenants have somewhere to go if they don't get the service they deserve, and investing £5.5 million for councils to tackle rogue landlords in their area."

Once again the Housing Minister or should we call him the Minister for Cornwall, Mr Mark Prisk a chartered surveyor is turning the serious problem of Letting Agents ripping off both Tenants and Landlords into an attack on "Rogue Landlords"
Regulation and Education of Letting Agents is needed just in the same way Chartered Surveyors are registered by RICS

johnsandall

Myself and two friends have just paid our holding deposit (of £1000) to lettings agent Ludlow Thompson for a rented property. Maybe we were naïve not to ask upfront, but having had our references checked out we've just been informed that we're required to pay an administrative fee of £1170. This seems somewhat obscene, given the very poor standard of service we've received so far (they've yet to spell any of our names correctly, including my debit card details).

This is "standard", equivalent to 1.5 weeks' rent + VAT; however, having lived/worked in London for 6+ years now, I know very well that this isn't a standard admin fee!

I'm wondering where this leaves us; certainly I'd like to try negotiate this down, but can they still keep our holding deposit if we walk away at this point, even though they didn't inform us of charges upfront?

The only outlet I can think of (other than on this particularly timely newspiece) is signing Shelter's petition to End Letting Fees. (Google it, I can't post links!)

JencParker

johnsandall wrote: »

Myself and two friends have just paid our holding deposit (of £1000) to lettings agent Ludlow Thompson for a rented property. Maybe we were naïve not to ask upfront, but having had our references checked out we've just been informed that we're required to pay an administrative fee of £1170. This seems somewhat obscene, given the very poor standard of service we've received so far (they've yet to spell any of our names correctly, including my debit card details).

This is "standard", equivalent to 1.5 weeks' rent + VAT; however, having lived/worked in London for 6+ years now, I know very well that this isn't a standard admin fee!

I'm wondering where this leaves us; certainly I'd like to try negotiate this down, but can they still keep our holding deposit if we walk away at this point, even though they didn't inform us of charges upfront?

The only outlet I can think of (other than on this particularly timely newspiece) is signing Shelter's petition to End Letting Fees. (Google it, I can't post links!)

I can't help you, but just wanted to say that is outrageous. The LA doesn't do any work for YOU - they work for the landlord .

I haven't rented for 30+ years, but never had to pay an 'administration fee'. I have signed!

tim123456789

"A clearly-displayed cost breakdown on property websites and in estate agents' windows would put an end to hidden and "opaque" charges, according to the Private Rented Sector report"

well of course it will, as it's patently obvious to any student of English that something that is clearly displayed cannot be hidden.

But what it most emphatically won't do is introduce competition into this area and bring down the fees. The fees charged will still be extortionate.

whalster

I know I may sound like a stuck record but nowhere reading through the submissions by different parties in this report this afternoon which basicaly fall into the predictable three camps -

letting agents ' oh don't regulate us let us keep our fees as if it were all put onto the landlord then rents would go up'

Tenants - being ripped off by letting agents hate letting agents poor service and for good measure hate landlords too

Landlords - ' oh no more regulation please as the rogue element will get away with it whatever

nowhere have I seen what I have been pushing for for over a year now which is make the large property portals list all the charges involved for every rental property listed , if rightmove and zoopla did this or were made to do it then a direct comparison could be drawn ,this combined with allowing private landlords to list on the site also showing their fees would force down rents and tenants costs .
A ban on fees to tenants by agents would also drive down costs as many landlords using them would be forced to join the more than 50% of landlords who let and manage their own property .

You can see why neither rightmove nor the agents will not do this turkeys do not vote for christmas .

With reform both landlords and tenants can benefit and this is why I spend a lot of time working for privatelandlorddirectory.com a free site totaly free for landlords and tenants where akin to the principles of this site there is no advertising by third parties and the only agenda is to help liberate landlords and tenants from the grip of high fees.

princeofpounds

They should be required to put up a 'menu' of fees clearly visible in their office and all paperwork.

Many, perhaps most, rental properties never make it onto websites. In London a lot of the listings are fake (or rather 'stale') anyway, to drive traffic to LAs they can then direct to any new properties that come up.

Transparency is a good place to start. It doesn't distort markets and prevents exploitation.

Pincher

They are all take the money and run hyenas, now.

It used to be a matter of course that the agent takes their percentage as the rent comes in, but now they want the whole lot upfront. As the numerate amongst you will realise, 10%+VAT is 12%, whereas the first month's rent is only 8%, so the landlord doesn't see the first month's rent at all. If the tenant scarpers after six months, do you get the excess commission refunded with interest?

They have no intention of dealing with either the tenant or the landlord until renewal time.

naked

Credit checking fees are one of the things many letting agents inflate, and if you go with another agent you have to pay for it to be done again, and if you rent a different property with the same agent and landlord, you still have to have it done again.

How about a government regulated credit checking mechanism which charges you at cost, lasts for a specified amount of time and can be used with any agency?

Similarly tenancy renewal admin fees of £100+ every 6 months to print another copy of the documents you signed last time. Maybe there should be a clause in the initial agreement saying it is automatically renewed on the same terms provided you keep paying the rent? (Just thinking of ways to get rid of the 'admin' so it can't be charged for)

Pincher

Credit checking?

A letter of reference from a small bank in a small town in Israel,
with no name or job title anywhere, just a signature. As far as the letting agent was concerned, job done, what more do you want?
It was in English, though. :rotfl: