We've come across a fantastic article on This Morning's website dealing a viewer's request for their consumer expert, Alice Beer, to investigate estate agent fees. Being an ARLA registered agent ourselves, we appreciate that This Morning have brought the importance of dealing only with ARLA registered agents to the nation's attention.
VIEWER ENQUIRY
This week we are responding to an email from viewer Katie Evans from Hastings who asked: "I am emailing you as I was wondering if consumer expert Alice Beer could investigate estate agent fees. I am looking to relocate to Southampton in July this year to be close to family and after speaking to several agents in this area I have found that their fees are all different and all extortionate. The prices I have been quoted for just myself range from £250 to £475 and this is not including the months rent, holding fee and deposit."
SO WHAT'S GOING ON?
3.6 million households in England are currently renting. Two thirds of all private tenancies involve an agent - and while house prices soar and stricter mortgage lending is enforced - the letting market will just keep growing.
SURELY LETTING AGENTS HAVE TO TELL YOU ABOUT FEES UPFRONT?
At the moment letting agents are not governed by any legislation and up until last week there was no need for them even to be members of any regulatory body that offered any form of redress. Estate agents have to work within the Estate Agent Act (1978) which tells them when they must tell a client fees.
WHAT HAPPENED LAST WEEK?
Last week – after an investigation and pressure from the OFT an amendment was made to the ‘Enterprise Bill’ which is currently going through Parliament… saying that all letting agents will be required to join an approved complaints scheme...
RIGHT OF REPLY
Ian Potter, Managing Director of the Association of Residential Lettings Agents said:
"Letting agents fees will vary across the country depending on the different services that are provided by agents. However, all ARLA licensed letting agents must adhere to our strict code of conduct and should be completely upfront with both tenants and landlords about any fees. If landlords or tenants are charged unclear or hidden fees, then they can lodge a complaint directly with ARLA or the Property Ombudsman."
WHAT'S THE GOVERNMENT DOING ABOUT THIS?
Last week, the Government announced an amendment to a bill that is going through Parliament at the moment, tightening the regulation of letting agents and requiring all agents to sign up to a mandatory redress scheme.
FOLLOW THIS ADVICE FROM CAB:
Before you register you must find out:
- Details of the services it provides
- Full details of the charges it makes
- Whether it is a member of a trade body such as ARLA, NAEA, RICS or NALS as it must have a complaints procedure and protect your money if the agency goes out of business
- Whether the agency has a complaints procedure and whether it is a member of an ombudsman scheme
- Details of the tenancy deposit protection scheme its uses.
You can expect to be charged:
- Administration fees
- A non-returnable holding deposit
- A security deposit
Before Register:
- Use an agency which is a member of a self-regulating trade body
- Association of Residential Letting Agents (ARLA)
- National Association of Estate Agents (NAEA)
- Royal Institution of Chartered Surveyors (RICS)
- UK Association of Letting Agents (UKALA).
The agency cannot charge you:
- To register with the agency.
- For a list of properties available for renting.
- A deposit which will be returned to you if it does not find you a suitable property.
Here at Applegate Lettings we are proud to be one of the few ARLA registered letting agents in the area so you can rest assured that we adhere to the strict code of conduct set out by ARLA and will be absolutely upfront with both tenants and landlords about any fees. All fees are displayed on the property advert so prospective tenants know what costs are involved before they even arrange a viewing!
Image: Texelart/Shutterstock
Image: Texelart/Shutterstock
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