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| Letting agents: Curb 'cowboy' practices, say MPs | Letting agents: Curb 'cowboy' practices, say MPs |
| (about 1 hour later) | |
| Letting agents should be subject to tighter regulations that would make it possible to ban those guilty of sharp practice, a group of MPs has urged. | Letting agents should be subject to tighter regulations that would make it possible to ban those guilty of sharp practice, a group of MPs has urged. |
| The letting sector suffers from "cowboy" agents who "rip off" landlords and tenants, says a Communities and Local Government Committee report. | The letting sector suffers from "cowboy" agents who "rip off" landlords and tenants, says a Communities and Local Government Committee report. |
| Problems included unreasonable fees and opaque charges, said committee chairman Clive Betts. | Problems included unreasonable fees and opaque charges, said committee chairman Clive Betts. |
| "Letting agents are subject to less control than estate agents," he added. | "Letting agents are subject to less control than estate agents," he added. |
| Mr Betts described the letting sector as "the property industry's Wild West", adding that those acting improperly needed to "play by new rules or get out of the sector". | Mr Betts described the letting sector as "the property industry's Wild West", adding that those acting improperly needed to "play by new rules or get out of the sector". |
| 'Regulation required' | 'Regulation required' |
| The report follows widespread concern about the level of fees charged by letting agents. | The report follows widespread concern about the level of fees charged by letting agents. |
| In June, housing charity Shelter said charges were "out of control" after its inquiries indicated that tenants in England were having to pay an average of £350 in fees on top of a deposit and up-front rent. | In June, housing charity Shelter said charges were "out of control" after its inquiries indicated that tenants in England were having to pay an average of £350 in fees on top of a deposit and up-front rent. |
| The Office of Fair Trading (OFT) recently found that about a third of all complaints about the lettings market were about fees and charges. | The Office of Fair Trading (OFT) recently found that about a third of all complaints about the lettings market were about fees and charges. |
| Concerns have been raised about how many of these charges were "drip-fed" after tenants had signed a contract. | Concerns have been raised about how many of these charges were "drip-fed" after tenants had signed a contract. |
| The committee report said letting agents should be subject to the same level of regulation as estate agents. This would allow the OFT to ban those guilty of abuses. | The committee report said letting agents should be subject to the same level of regulation as estate agents. This would allow the OFT to ban those guilty of abuses. |
| It also demanded action to crack down on hidden and unreasonable fees, saying agents "should be required to tell tenants about fees before they start the letting process". | It also demanded action to crack down on hidden and unreasonable fees, saying agents "should be required to tell tenants about fees before they start the letting process". |
| Refund call | Refund call |
| Housing Minister Mark Prisk said: "The committee's report offers a useful contribution to this important issue. We are determined to build a bigger and better private rented sector that gives tenants more choice but we should avoid excessive regulation on the sector which would push up rents and reduce choice for tenants. | |
| "We are taking action to require all letting agents to belong to a redress scheme so landlords and tenants have somewhere to go if they don't get the service they deserve, and investing £5.5m for councils to tackle rogue landlords in their area." | |
| Shelter called for urgency from the government in implementing changes, pointing out that nine million people lived in the UK's private rental sector. | |
| It wants to see long-term tenancies for families, an end to upfront fees charged by landlords, and refunds of rent for tenants if a landlord is convicted of letting a property below the legal standard. | It wants to see long-term tenancies for families, an end to upfront fees charged by landlords, and refunds of rent for tenants if a landlord is convicted of letting a property below the legal standard. |
| The Property Ombudsman, Christopher Hamer, said that many lettings agents were not affiliated to any trade association. | The Property Ombudsman, Christopher Hamer, said that many lettings agents were not affiliated to any trade association. |
| He agreed that a "full disclosure" of fees, and a code of conduct used by the whole industry, was needed. | He agreed that a "full disclosure" of fees, and a code of conduct used by the whole industry, was needed. |