We are pleased to republish the following article from Morgans Estate Agents in Leeds.
"With
a Which? report stating that tenants are playing ‘renting roulette’ and a
recent RICS report suggested that the private rented sector was the ‘Wild West’
of the property market, there is mounting pressure on the Government –
especially from homeless charity Shelter – for a total ban on all fees charged
by letting agents and Morgan believes that the industry should be working with
the Government to formulate a sensible approach to the problem.
What’s
happened in Scotland is staggering – to totally ban all letting agent’s fees
makes no sense at all – there is a substantial cost associated with running a
lettings business and staff can’t carry out viewings, inventories, check
references and complete other administration tasks for free. The Scottish media
is also claiming that lettings fees charged have been illegal and they are
pushing for PPI-style payouts, which is just absurd. These fees have not been
‘mis-sold’ they are simply part of the lettings process.
It’s essential
that our Government doesn't panic and feel forced into re-structuring the
entire lettings industry because of a media campaign. Any reputable letting
agent would agree that a fair and transparent approach to fees charged is required
but unfortunately there are unscrupulous operators in this industry and their
bad practice is tainting everybody else.
The Government
needs to consult with lettings agents and those campaigning for a ban on fees
to reach a mutually beneficial outcome. Letting agents have to make a profit in
order to employ staff, service landlords and find and manage properties for
tenants, and of course those tenants must be given a clear and simple
explanation of any fees they are paying.
At the moment
all agents can do is voluntarily sign up to RICS or ARLA but as the Which?
report has proven, the majority of tenants and landlords don’t even know who
these bodies are or what they do. The only way forward is a consultative
approach that provides an outcome that will protects tenants, landlords and
agents.
We
are already in discussion with Leeds MP Hilary Benn, Shelter and one of the
UK’s biggest firms of lettings agents – Countrywide – and hope to arrange a
forum in which we can all talk openly and honestly to find a solution, and I am
keen for any agents who want to be involved to get in touch."
