Letting agency advice (Extortion)

djpleasure

Mi MSE'rs

I am hoping for some help and advice.
I have been living in private rented accommodation for about 5 years, with not many issues other than the normal rent increases. I am registered disabled, physically and mentally as such I am on benefits. My current rent is £665 pcm, i struggle with this as the LHA is much lower so i have to try to find the rest, which i am just about managing. I have looked to find cheaper ground floor accommodation but with no success.

My time again to renew tenancy has come up, proposed rent the same, so that is ok. Now my letting agent is fleecing me. every time i renew tenancy it was costing £52, a fee i had to borrow in order to pay. This time around that fee had doubled since last year, I simply cannot afford to pay that amount, but at the same time cannot lose my home. Surely letting agents cannot do this, it is not inline with inflation or even close, they cant just willy nilly massively up the fees, hardly any admin actually involved as it is all done online.

G_M

Read:

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

and

* Rent increases: when & how can rent be increased?

KRB2725

I don't think there is anything to prevent them upping their fees, although someone may know better than I.

Why don't you speak to the agent and see if you can pay it monthly?

Alternatively you could not renew and your tenancy will become periodic.

BitterAndTwisted

It isn't extortion, it's just market-forces at play and the agent taking full advantage of it. If there was an over-supply of suitable and affordable properties going begging agents wouldn't be able to charge a penny for renewing a tenancy. They'd be happy earning the commission on the rents they were collecting.

You have a choice: either tell the agent that you'd be happier on a periodic tenancy and risk being served with a Section 21 Notice, or pay up.

Given that you're having such trouble finding somewhere suitable at a lower rent I suggest you don't risk being forced by the landlord to move.

Have you had any contact direct with your landlord rather than always dealing with their intermediary? It could be that your landlord is happy having a long-term tenant who is a known quantity and would rather not risk a void period by losing a good, reliable tenant and would agree to you going on to a periodic tenancy.

Fixed-term tenancies gives both parties some comfort. Landlord gets rent for the next 12 months, tenant gets security of tenure for the same period.

jjlandlord

It is a free market.
They are free to propose any price they wish and you are free to accept or refuse.

djpleasure

seriously flawed and needs regulating

jjlandlord

djpleasure wrote: »

seriously flawed and needs regulating

By that logic every prices should be controlled.

djpleasure

not at all, but with the way the housing market is, private rented is not a choice, but something we have to do, I can swallow occasional rent increases, but doubling a fee to renew a tenancy which requires no admin as it is all E-Sign is just plain wrong and plain greedy. By your logic, it is fair to fleece people? it is no better than extortion. Blunt, but by no means fair

jjlandlord

Tell them you won't renew, then. You don't have to, as already said.

To me it is quite fair that people living in a free society can freely decide for themselves what to charge for their service and what to pay for the services provide by others.
Alternatives exist. You wouldn't like them.

Your issue is with social housing, or lack thereof, or with the benefits system, not with private landlords or letting agents.

djpleasure

No, my issue is not as you put it, my issue is doubling a fee is extortion and plainly wrong. A free society is open to abuse as is clearly the case here. Like many I am in private rented, this is nothing to do with social housing or benefits, it is simply due to in this day and age it is extremely difficult to get a foot on the housing ladder anyway, so like many, private rented is the only option. There is very little legislation governing unscrupulous landlords and letting agents, but I am sure one day that will change, as the holding tenants to ransom is simply not on, I cant help but think, judging by your username, you are one of those Landlords lol, no offence, but you are in agreement with everything Landlord and Let, with no regard for the tenant, all too common.

Immers7

Shame the Scottish legislation outlawing letting fees hasn't been brought in south of the border.

The cost of renewing tenancy should be borne out of the letting agents/landlords overheads. If there is any real cost then I imagine it would a tax write off anyway.