Letting agents required to publish full details of fees

Letting agents in England will now be required to publish full details of the fees they charge.

New plans have been announced by government ministers to enforce the publishing of fees to tenants from lettings agents. These fees now must be published online and in their offices, any companies that fail to comply will be fined.

The move by the coalition ensures a fair deal for landlords and tenants, closing off the opportunity for a small minority of rogue agents to impose unreasonable, hidden charges.

Commenting on the announcement, housing minister Kris Hopkins stated: ‘The vast majority of letting agents provide a good service to tenants and landlords. But we are determined to tackle the minority of rogue agents who offer a poor service. Ensuring full transparency and banning hidden fees is the best approach, giving consumers the information they want and supporting good letting agents,’

“Short-term gimmicks like trying to ban any fee to tenants means higher rents by the back door,” he added.

Mr Hopkins said “waging war” on the private rented sector would only serve to reduce investment in new housing and reduce the amount of choice on the market.

The government revealed the new regulation will be in place for 12 months and should it provide the expected benefits an amendment to the Consumer Rights Bill will be made. It will run alongside recent legislation that requires all letting agents in England to be part of one of three approved redress schemes.

Here at Applegate, we welcome this announcement. We have not only displayed our fees for some time now and we always provide any applicant with documentation they must read, digest and sign before any fees will be accepted. This documentation lists all fees and explains how the application process works. We feel that all other agents should follow suit.

Source: http://www.rman.co.uk/

Image Source: Shutterstock/Jean-Philippe WALLET