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Crucial Commons vote on letting agent fees
MPs will vote on whether letting agent fees to tenants should be banned in the Commons today.
The proposals are tabled as an amendment to the Consumer Rights Bill after the Labour party forced a vote on the issue that has been the talk of the lettings industry for months. Fees to tenants are already banned in Scotland.
Party leader Ed Miliband told reporters during a campaign visit to Greater Manchester last week that Labour would be challenging Conservatives and Liberal Democrats to back the measure.
The proposals are part of a Labour plan to shake up the private rented sector. Earlier this month Miliband announced that if Labour came to power tenants would be offered three-year contracts as standard, rent increases would be controlled and letting agent fees to tenants would be banned.
Unsurprisingly the plans have not gone down well in the lettings industry.
David Whittaker, managing director of Mortgages for Business, said: “Axing letting fees would be a wonderful idea if it were possible. But these charges reflect the cost of doing business for lettings agents, and will only be passed on to tenants via higher rents if they are outlawed.”
Meanwhile Paul Weller, managing director of letting specialist Leaders, said: “It is irresponsible to attempt to amend the Consumer Rights Bill tomorrow having provided just three working days’ notice of such intention. Industry stakeholders have had no time to prepare a response to such an amendment to legislation which will have a huge impact on our industry and the housing needs of tenants and their families.”
Leaders argues that the fees letting agents charge are necessary to ensure a quality and trustworthy service for both landlords and tenants and that it is fair and proper for both parties to pay them, provided all fees are clear, transparent, proportionate and there are no hidden extras.
“It is the job of the agent to protect the interests of both landlords and tenants,” said Weller. “We don’t only act for the landlord, we must also make the time and effort to fully understand our tenant’s requirements and ensure we help them secure the right property. We must make sure the property is safe and legally compliant, with the appropriate gas, electrical and fire safety checks and records in place, and protect our tenant’s rights by ensuring all documentation and legal paperwork signed by them is correct and meets their specific requirements. A significant number of tenants wish to make amendments to their tenancy agreement to suit their personal requirements and we are able to accommodate this because their fees cover the cost of the work and resources required.”
