The Labour party is to write to letting agents telling them to stop charging fees to tenants now.
On the party website, shadow housing minister Emma Reynolds says under the headline ‘Labour will ban rip-off letting fees’: “The next Labour government will ban letting agents from charging renters rip-off fees. But we know renters are being hit hard now, so we’re writing to the biggest letting agents asking them to give renters a fair deal.”
An open letter to agents on the Labour website says:
“Private renting is now the norm for 9 million people, including 1.3 million families.
“Many face unstable short-term lets and high letting agent fees every time they move. There is little transparency about what people are charged, with renters paying £350 on average. These charges are unfair on tenants and are for services for landlords that they are also charged for.
“That’s why the next Labour government will introduce legislation to ban letting fees for tenants.
“But a solution is open to us now. I’m asking you to help renters with the cost-of-living crisis: please stop charging tenants these unfair fees now.
Emma Reynolds, Shadow Minister for Housing”
Eye would be intrigued to know which agents get letters and whether they are the same as the one above – and we will be even more intrigued to see your responses.
Meanwhile, Labour has been accused by the Daily Mail of kowtowing to its union “moneymen” over the issue of rent controls – which Labour also wants to introduce.
The paper pointed out yesterday in a leader that rent controls have proved disastrous wherever they have been tried.
The Mail said: “On Thursday, a few days after 50 Labour MPs were handed £3,000 each by Unite, it was duly unveiled as party policy by Ed Miliband.
“In name, it is Red Ed – who is also preparing to buckle to union demands to renationalise the railways – running for Prime Minister next year.
“But if he scrapes into No 10, it will be Unite’s antediluvian Len McCluskey and the union moneymen who, terrifyingly, will be running the country.”
According to opinion polls at the weekend, Labour and the Conservatives are running neck and neck.
Labour’s plans to “reform” the private rented sector have come under renewed fire from agents. See next story.
Comments (7)
These control-freak policies are sounding like the same old ideas from the 1970's when labour left this country in a complete mess which then took the tories 13 years to sort out. I remember a time when very few agents charged tenants fees but once you have processed a dozen or more tenancy applications in the a space of 12 months only for the tenants to pull out at the last minute, having applied for more than one property, you soon realise that only by charging a fee can you guarantee any form of commitment. There could be a limit placed on these fees to avoid some agents ripping off tenants (you hear some horror stories) but if they are banned altogether the cost of processing applications, and of wasted work on failed applications, will be passed on to landlords which will inevitably mean rents will rise even faster. These costs will ultimately find their way back to tenants one way or another.
Does anyone remember the 60s ?
there use to be 2 gangs, the Mods and the Rockers.
the Mods would go to Brighton for a bank holiday shindig followed by the Rockers who would get into a fight with the Mods. They would beat the s**t out of each other for 2 / 3 days then go home leaving a trail of devastation behind them. who would pay for the clean up ? repair the windows ? patch up the broken bodies ? why the locals of course. The Mods and the Rockers paid for nothing.
In parliament we have two gangs. Labour and Tory. they beat the s**t out of each other for 5 years. who pays for the mess they leave behind ?
WE DO !
Come on this is clearly all about Ed and Emma and a desperate need for votes. What they should be focused on is more bricks to resolve a shortage of housing for a growing population. I dont see any letting agents in the Times rich list.Tenants pay for a service if landlords take this on rents wont go down will they, or will that be another labour idea without thought.
Well, if I get a letter from the Labour Party my reply will be along the lines of 'if you give up your salary/expenses then I'll look at my charges'. There is a serious disconnect between 'Government' (of whatever persuasion) and small business. Despite Mr Cameron's comments about small business 'powering' the UK out of recession I have a feeling that both parties would consider the vast majority of us to be 'micro-business' and not worth worrying about. Steve has it right – and some agents are taking the mickey. Our charges to tenants are amongst the lowest in this area and charges to landlords are pared back – it's called a Free Market!
I love all this clap-trap about not charging tenants fees.
It takes a minimum of 3-4 hours + expenses to compile, make specific, update and print all property paperwork – Lease Agreements, Inventories, Property Utility Details, Banking Details, Letting Contracts etc. – In readiness for a new tenant.
All I can say to ANYONE decrying Fee's is: LUCKY YOU THAT CAN DO A DAYS WORK FOR FREE!
I do disagree with extortionate fees that some Agents Charge, but a fair set fee for a fair exchange of a days work and costs is not too much to ask for.
I quite agree. Bright Homes – Hull and Holderness
I thought Milly Bland was just inventing ways to commit suicide.
the man should suggest something similar to Tesco. " stop charging for food "
how about him NOT claiming his expenses.
why doesn't he write to all the councils telling them not to charge council tax or business tax.
so many parallels to choose from ! the list is endless.