As the rental market continues to grow, there is some concern that unregulated letting agents are ripping tenants off with variable fees and significant up-front charges. Because of this, many experts are calling for the government to force letting agents to adhere to the same standards estate agents are subject to.
Research has shown that fees charged by letting agencies vary enormously across the country and tenants are often completely unaware of what charges they are incurring before they sign a rental agreement. Of the twenty-five letting agents surveyed, only two openly displayed their fee structure on their website, and in most cases, tenants were left completely in the dark until it was too late.
With an increasing number of families forced to move into the private rental sector, this kind of behaviour could leave many households financially disadvantaged—a lot of tenants are being forced to find a deposit for a new property before they are handed their old one back. If letting agents were regulated in the same way as estate agents, some of the more unscrupulous practices could be outlawed. Charges also need to be more transparent so that tenants know exactly what they paying right from the start. It should also be made easier to transfer deposits between landlords.
With increasing numbers of tenants seeking rental properties, the market is incredibly buoyant, but unfair practices harm everyone, especially vulnerable tenants, and as a landlord, I am strongly in favour of anything that helps to keep the rental market fair.
