The government has announced that letting agents will be required to publish full details of the fees, in a move designed to avoid excessive state regulation.
Currently, the Advertising Standards Authority only requires letting agents to list compulsory charges to the tenant upfront in the process. Those letting agents who are found to have imposed hidden charges are generally just named and shamed on the Advertising Standards Authority’s website.
But the government wants to require all letting agents to publish a full tariff of their fees – both on their websites and prominently in their offices. Anyone who does not comply with these new rules will face a fine.
Housing Minister, Kris Hopkins, said: “The vast majority of letting agents provide a good service to tenants and landlords. But we are determined to tackle the minority of rogue agents who offer a poor service. Ensuring full transparency and banning hidden fees is the best approach, giving consumers the information they want and supporting good letting agents.
“Short-term gimmicks like trying to ban any fee to tenants means higher rents by the back door. Excessive state regulation and waging war on the private rented sector would also destroy investment in new housing, push up prices and make it far harder for people to find a flat or house to rent.”
The government has already introduced new legislation which will require all letting and managing agents in England to belong to an approved redress scheme. Last month, Hopkins approved three redress schemes that all letting and property management agents will be required to join later this year – ensuring tenants and leaseholders have a straightforward option to hold their agents to account.
The three compulsory schemes – the Property Ombudsman, Ombudsman Services Property and the Property Redress Scheme – will offer independent investigation of complaints about hidden fees or poor service. Where a complaint is upheld, tenants and leaseholders could face compensation.