The Labour Party has pledge to crackdown on bad practices in the letting sector if it comes into power at the next election.
Its leader Ed Miliband claimed he will take action against “rip-off” agents after a study carried out by the party revealed the high fees charged by some firms, the Independent reports.
In an analysis of 91 agencies, Labour found the average tenant pays a total of £902 in up-front costs, which includes deposits and charges for reference checks and admin work. The figure stood at £1,700 for people renting in London.
Three-quarters of the agents covered by the study were found to be not transparent about the fees they charge, while only half were willing to provide information on this via email.
This is not the first time the Labour Party has vowed to make reforms in the letting sector. In June, shadow work and pensions secretary Liam Byrne told the BBC it could force agents and landlords to lower rents if it comes into power in a bid to reduce the amount spent on housing benefits.
Furthermore, the party released a report into the UK housing market in May that called for the regulation of letting agents.
Shadow housing minister Jack Dromey told the Independent: “Labour has called for effective regulation of letting agents, to force them to be transparent on their fees, and we’re assessing the size and level of fees that can be charged. Tenants need proper protection against being ripped off.”
However, a figure within the private rental sector has warned of the dangers of judging the industry as a whole based on the actions of a rogue minority.
Alan Ward, Residential Landlords Association chairman, said it was “unfair” of Labour to include the cost of deposits in its research as these charges are usually paid back.
He added that while he supports the introduction of regulation to tackle bad practices, the agencies he deals with only charge modest fees and provide a useful service for tenants.
Here at Applegate Lettings our fees would not be anywhere near £900 and all fees are not only handed to the applicant in an information sheet before applying – they are also listed on the internet advert. We see no point in hiding fees and we go as far as listing them and justify what each fee is for. We receive fantastic feedback from tenants who have been very pleased with our services – please our testimonials page http://www.applegatelettings.co.uk/testimonials/ to read some of them!
source: www.rman.co.uk
Image: Yoki5270/Shutterstock
No comments:
Post a Comment