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You can find the current article at its original source at http://www.guardian.co.uk/money/2013/jun/12/lettings-agent-fees-out-of-control-shelter
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| Letting agent fees are out of control, says Shelter | Letting agent fees are out of control, says Shelter |
| (4 months later) | |
| Shelter is calling for a ban on "out of control" letting agent fees that are forcing millions of tenants into debt. | Shelter is calling for a ban on "out of control" letting agent fees that are forcing millions of tenants into debt. |
| The housing and homelessness charity says letting agents frequently demand hefty upfront sums to set up a tenancy, on top of the deposit and rent, with the average amount being £350. | The housing and homelessness charity says letting agents frequently demand hefty upfront sums to set up a tenancy, on top of the deposit and rent, with the average amount being £350. |
| According to the mystery shopping exercise carried out by the charity among 58 letting agencies across England, almost a third were charging tenants more than £400 to set up a tenancy, with seven charging in excess of £700. | According to the mystery shopping exercise carried out by the charity among 58 letting agencies across England, almost a third were charging tenants more than £400 to set up a tenancy, with seven charging in excess of £700. |
| This is in addition to the separate sum charged to the landlord by agents to find tenants and set up agreements on their behalf. | This is in addition to the separate sum charged to the landlord by agents to find tenants and set up agreements on their behalf. |
| Alongside the rising cost of rent, upfront fees are putting additional pressure on tenants' finances with a quarter having to borrow money to pay them in the past three years, while one in six had to cut down on food or heating to meet the costs, Shelter found. | Alongside the rising cost of rent, upfront fees are putting additional pressure on tenants' finances with a quarter having to borrow money to pay them in the past three years, while one in six had to cut down on food or heating to meet the costs, Shelter found. |
| The charity wants agencies to be barred from charging "administration" and "holding" fees, "check-in" fees, or for credit checks. In some cases, these fees are non-refundable, even if the agreement falls through and the tenant is unable to move into the property. | The charity wants agencies to be barred from charging "administration" and "holding" fees, "check-in" fees, or for credit checks. In some cases, these fees are non-refundable, even if the agreement falls through and the tenant is unable to move into the property. |
| The Office of Fair Trading recently found that of 4,000 complaints made by tenants and landlords to Consumer Direct about lettings agents, a third related to fees and additional charges. It found that landlords and tenants are being "drip-fed" extra charges after signing a contract. | The Office of Fair Trading recently found that of 4,000 complaints made by tenants and landlords to Consumer Direct about lettings agents, a third related to fees and additional charges. It found that landlords and tenants are being "drip-fed" extra charges after signing a contract. |
| Campbell Robb, chief executive of Shelter, said: "Letting agency fees have become truly out of control. When renters have to find hundreds of pounds in fees each time they move – on top of deposits and rent in advance – it's not surprising that fees are causing real financial hardship and, in some cases, preventing people from moving at all. | Campbell Robb, chief executive of Shelter, said: "Letting agency fees have become truly out of control. When renters have to find hundreds of pounds in fees each time they move – on top of deposits and rent in advance – it's not surprising that fees are causing real financial hardship and, in some cases, preventing people from moving at all. |
| "The high demand for rented homes means renters can't shop around, but instead have to deal with the letting agency their landlord has chosen. They have no choice but to swallow their anger and stump up their cash." | "The high demand for rented homes means renters can't shop around, but instead have to deal with the letting agency their landlord has chosen. They have no choice but to swallow their anger and stump up their cash." |
| Mark Prisk, the housing minister, said: "While most letting agents offer a good service, clearly some of the practices highlighted in this report are a cause for concern. I agree with Shelter that we need to take action to drive up standards in the sector. But a blanket ban cannot be the answer to tackle a minority of irresponsible agents. | Mark Prisk, the housing minister, said: "While most letting agents offer a good service, clearly some of the practices highlighted in this report are a cause for concern. I agree with Shelter that we need to take action to drive up standards in the sector. But a blanket ban cannot be the answer to tackle a minority of irresponsible agents. |
| "We are already changing the law to require all letting and managing agents to belong to an approved redress scheme, which will give tenants an effective way to address complaints. And the Advertising Standards Authority have been clear that all fees and charges must be available up front so that tenants know what to expect when they sign on the dotted line." | "We are already changing the law to require all letting and managing agents to belong to an approved redress scheme, which will give tenants an effective way to address complaints. And the Advertising Standards Authority have been clear that all fees and charges must be available up front so that tenants know what to expect when they sign on the dotted line." |
| These practices are rife across parts of the unregulated lettings industry, said property expert Henry Pryor. "Letting agents remain unregulated and unaccountable, and the industry has been described as the 'wild west' of the property market by the Royal Institute of Chartered Surveyors, with frequent examples of sharp practice coming to light," he said. | These practices are rife across parts of the unregulated lettings industry, said property expert Henry Pryor. "Letting agents remain unregulated and unaccountable, and the industry has been described as the 'wild west' of the property market by the Royal Institute of Chartered Surveyors, with frequent examples of sharp practice coming to light," he said. |
| "Letting agents have for years charged what they describe as 'administration' fees, and continue to charge tenants for credit checks and inventory checks. However, both landlords and tenants are often unaware that all these amounts, including the actual rent itself, are negotiable. There is no law that states what a letting agent can charge, or indeed who they bill. | "Letting agents have for years charged what they describe as 'administration' fees, and continue to charge tenants for credit checks and inventory checks. However, both landlords and tenants are often unaware that all these amounts, including the actual rent itself, are negotiable. There is no law that states what a letting agent can charge, or indeed who they bill. |
| "Tenants should remember that the letting agent is not a broker; he represents the landlord and as such is charged with doing the best deal on behalf of the landlord who pays his fee. Tenants should shrug off the peculiar embarrassment that the English have with haggling, roll up their sleeves and negotiate. Remember that negotiating is a two way street so don't dig your heels in unless you are prepared to walk away. Remember, a happy tenant is the best tenant a landlord could wish for." | "Tenants should remember that the letting agent is not a broker; he represents the landlord and as such is charged with doing the best deal on behalf of the landlord who pays his fee. Tenants should shrug off the peculiar embarrassment that the English have with haggling, roll up their sleeves and negotiate. Remember that negotiating is a two way street so don't dig your heels in unless you are prepared to walk away. Remember, a happy tenant is the best tenant a landlord could wish for." |
| Anyone who believes they have been charged unfairly by a letting agent should contact their local trading standards officer. | Anyone who believes they have been charged unfairly by a letting agent should contact their local trading standards officer. |