Fees able to be charged by letting agents will be discussed tomorrow in the House of Lords, as the Renters’ Rights Bill takes stage in the upper house.
The proposal was put forwards as a Private Members Bill by Liberal Democrat peer Baroness Grender, but is unlikely to become law outright. However, Private Members’ Bills have a record of highlighting features that are later put into legislation.
Scrapping of fees
Grender’s measure outlines the scrapping of agents’ fees for tenants. It calls for an amendment to the Landlord and Tenant Act 1985, to stop agents in England by charging both existing tenants or prospective tenants.
She calls for no charges to tenants for registering, administration, inventories or reference checks, alongside free renewal or exit fees.
In addition, Baroness Grender has called for the mandatory registration of landlords and caps of the size of deposits. What’s more, the proposals request an automatic ban for any agent or landlord named on a ‘rogue operator’ database from being given a HMO licence.
Renters’ Rights Bill to be debated tomorrow
Support
Last time the measure was debated in the House of Lords, it received substantial all-party backing. At this debate in June, Baroness Grender told the Lords that consumer protection for private sector tenants was less developed than in other commercial activities.
Grender observed that renters are, ‘often at the mercy of landlords and lettings agents.’[1]
‘It’s time for the Government intervention to address this imbalance of power and build up the consumer rights of renters….Letting agents should not be able to get away with double charging fees, imposing them on both tenants and landlords, when in fact it is only the landlord that is the client,’ she added.[1]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/11/letting-agents-fees-to-be-discussed-in-house-of-lords-tomorrow
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