It has been revealed by Which? that major letting agents in the UK are not being upfront and are acting unlawfully by not informing clients about the fees they charge.
Which? sent mystery shoppers posing as potential tenants to four different London branches of each of Foxtons, Barnard Marcus, Martin & Co and Your Move and they found that the fees tenants can expect to pay are not disclosed early enough. This means that tenants get unexpected charges and also they don’t always know what they are signing up to until it is too late.
Richard Lloyd, executive director at Which? said: “Renting is now the only housing option for millions, and with many households struggling to pay rent and bills, it is vital that letting agents are upfront about expensive fees in advance. People should know all the costs before they invest time and effort in viewing property to rent. Drip feeding fees is unfair and a major barrier to people comparing agents and properties.
“Despite its dramatic growth, there is also an alarming lack of consumer protection and redress in the rental sector. Tenants deserve much better.”
Which?’s snapshot research found:
None of the letting agents provided information about fees in any property listings on their website, on Rightmove.co.uk or after tenants had registered online.
Only one tenant (at a Foxtons’ branch) was proactively given fee information when they registered in branch or called to arrange a viewing
No tenant was provided with a written schedule of charges.
In some cases tenants were either not given fee information even when they asked, or they were not given the complete details.
The research discovered that the average cost for mandatory administration and referencing fees across all agents was £310, and the highest was £420. Some tenants could also face check-in and check-out fees, bringing the total closer to £600.