Landlords groups have welcomed plans by the Government to improve the transparency of fees charged by lettings agents.
Following the Labour Party’s decision to seek an amendment to the Consumer Rights Bill to end charges paid by tenants to lettings agents, the Government instead announced it will improve the transparency of fees charged by agents.
This backs a call by the Residential Landlords Association (RLA).
The new proposals will mean that lettings agents will be required to publish full details of the fees they charge – both on their websites and in their offices. Currently the Advertising Standards Authority only requires letting agents to list compulsory charges to the tenant upfront in advertisements.
Any agents not complying with the new transparency rules will face a fine which is much stricter than current penalties.
The Government say that the new rule represents a fair deal for both landlords and tenants, and closes a loophole allowing a small minority of rogue agents to impose hidden and unreasonable charges.
The Government will now bring forward its own amendment to the legislation.
Commenting on the proposals, RLA policy director Richard Jones said: ““The RLA has been calling for greater transparency of the kind announced yesterday and we welcome the Government’s decision to amend legislation accordingly.
“Labour’s plans would have only served to increase tenant rents as many landlords would in all likelihood have passed the extra costs of having to shoulder all charges levied by letting agents onto tenants.”
Kris Hopkins, the housing minister, added: “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.”