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One More Chance To Ban Letting Agents Fees (Via Generation Rent)

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Via Generation Rent;

http://www.generationrent.org/one_more_chance_to_ban_letting_fees

The issue of lettings agent fees is back in parliament next week with an amendment to the Consumer Rights Bill that would make it an offence to charge fees to tenants.

We have been raising the gross unfairness of letting fees throughout the passage of the bill, and now there is another chance for politicians to do something about it.

As any renter will know, however pernicious an unclear or surprise fee is, the central issue remains the huge cost that fees impose on tenants, who have no other choice. Not only are these fees completely disproportionate to the services rendered, they are also charged to captured consumers – renters cannot use their consumer power to bargain down fees when they are looking to rent, because they are stuck with the agent that comes with the property.

In an unstable tenure like the private rented sector, renters are hit with huge costs every time they move, and there’s very little they can do about it. The other party in the transaction – the landlord – is in a much better position to use market forces to make fees fair, because they can choose which agent to go with. Given this, and the fact that the agent is in fact working for the landlord, fees should only be levied on the landlord.

This change would also end the double-charging of fees which is unacceptable and even illegal in so many other industries but still prominent within private renting.

We know this amendment make sense, and that it would make a real material difference to the millions of renters having to rent a property each year. But at this late stage in the House of Lords, we need to keep the pressure on the Minister responsible, Vince Cable, and let him know that we need to end fees for tenants once and for all.

Please take a moment to write to Vince Cable, the Secretary of State for Business, Innovation and Skills, telling him that government should ban this rip-off of private renters.

We can’t continue to allow lettings agents to squeeze us. Let’s take this chance to finally end these exploitative fees.

If you're on twitter, please check out this list of members of the House of Lords and ask some of them to ban letting agent fees.

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As a Twitter guy I knows keeps complaining, so called Libertarians and capitalist want to tax/ban something. No just bring back capitalism #letmktsetrates #banHTB etc and stop interfering in mkts. THEN GEN RENT will get what it wants. Not by p1ssing around with LA fees.

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Unfortunately, I think Letting Agents are quite happy in their cartel.

Indeed, I've a rental agreement sitting in front of me from a regional High St. chain which has a term which is expressedly described as 'unfair' by the OFT. It's not some nuanced legalese which is open to various interpretations either, just a naked attempt to make the tenant liable for repair costs to windows from insurable risks. Of course, when I raised a question about getting it struck out of the contract, it has to go to a manger for consideration.

Incredible, you've more instant protections buying a pair of shoes than coughing a couple for hundred for referencing fees only to be presented with a Landlord's Charter.

Edited by Joan of The Tower

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As a Twitter guy I knows keeps complaining, so called Libertarians and capitalist want to tax/ban something. No just bring back capitalism #letmktsetrates #banHTB etc and stop interfering in mkts. THEN GEN RENT will get what it wants. Not by p1ssing around with LA fees.

I agree with you but in the meantime, Generation Rent are the best tenants are going to get fighting their corner for now.

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When we moved to our current place (in the north west, not even london) the letting agents wanted £500!

and they were charging the landlord £75 a month as well for "managing" the letting.

Told them to stick it.

Went to the landlord direct, (turned out they were an acquaintance of a friend).

Explained what the lettings agent was asking (they apparently had no idea it was so high)

Did a deal direct, £50 a month off the rent and no fees at all.

Lettings Agents? F**k 'em.

Edited by Bear Necessities

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Does anyone disagree with letting agents fees to tenants being outlawed? Every time I see a suggestion like this many come out of the woodwork and say that it won't work/push up rents etc..

Personally I think it's a great idea from both the landlords point of view and the tenants. The landlord can shop around for the lowest fees and then make a bit more on the rent. Then tenant can take their pick of property using the offered rental price without incurring fees or risk.

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Does anyone disagree with letting agents fees to tenants being outlawed? Every time I see a suggestion like this many come out of the woodwork and say that it won't work/push up rents etc..

Personally I think it's a great idea from both the landlords point of view and the tenants. The landlord can shop around for the lowest fees and then make a bit more on the rent. Then tenant can take their pick of property using the offered rental price without incurring fees or risk.

Yes landlords and letting agents :lol:.

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Does anyone disagree with letting agents fees to tenants being outlawed? Every time I see a suggestion like this many come out of the woodwork and say that it won't work/push up rents etc..

Personally I think it's a great idea from both the landlords point of view and the tenants. The landlord can shop around for the lowest fees and then make a bit more on the rent. Then tenant can take their pick of property using the offered rental price without incurring fees or risk.

I disagree. If an LA wants to charge it, let them. The market will spot those who don't charge.

Capitalism is inherently deflationary, when added to technology (and globalisation).

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I disagree. If an LA wants to charge it, let them. The market will spot those who don't charge.

Capitalism is inherently deflationary, when added to technology (and globalisation).

Problem is that often there are very few suitable properties and you may have little option regarding which agent to use. It's not like you can select the property you'd like then decide which agent to let it through.

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I disagree. If an LA wants to charge it, let them. The market will spot those who don't charge.

It hasn't worked yet has it? They're in cahoots. It's a nice little earner for LAs that started in London and has spread to the rest of the country.

At least in London (or in other big cities) you have a better chance of finding a private landlord through Gumtree. Fat chance in the rest of the country.

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Unfortunately, I think Letting Agents are quite happy in their cartel.

I am sure they are - but I have wondered why some easy jet style entrepreneur has not tried to break the cartel

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It hasn't worked yet has it? They're in cahoots. It's a nice little earner for LAs that started in London and has spread to the rest of the country.

At least in London (or in other big cities) you have a better chance of finding a private landlord through Gumtree. Fat chance in the rest of the country.

At my university (in the North) landlords can advertise direct to staff via a University service. Used it both times I have taken out a rental and dodged agency fees :)

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At my university (in the North) landlords can advertise direct to staff via a University service. Used it both times I have taken out a rental and dodged agency fees :)

same here, at our university

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Entirely pointless since it will just be amortized into rent higher rental payments when agents raise their commission rates.

Why? Is there a neverending supply of rich tenants who can pay ever increasing rents?

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