Labour are to call a vote in the Commons in an attempt to ban letting agents from charging fees to tenants. Party leader Ed Miliband said people buying a house do not pay agents, but people who rent do and Labour was standing up for ‘generation rent’.
The proposal will be tabled as an amendment to the Consumer Rights Bill in the Commons on 13th of May. The Association of Residential Letting Agents said it was ‘deeply concerned’ by Labour’s proposals.
Meanwhile, Paul Smith, CEO at haart, the UK’s largest independent estate agent, said: “This is nothing but an empty political PR stunt. Tenants receive a very good service, mostly to protect them and their interests, both physical and financial and to ensure they have security of tenancy. That service comes at a real cost to agents and if we are unable to charge as an industry, there is a danger agents will cut corners and reduce the quality of administration.
“Tenants’ fees include the cost of referencing (employment and previous landlord) and ensuring that the prospective tenant is actually who they say they are and that they can afford to make rental payments. If the tenant doesn’t pay for this service upfront it will not simply disappear - instead it will become part of the monthly rent if the costs are transferred to the landlord. Will the Labour Party also seek to implement this ban on lettings for commercial lets too?”
