Letting agent fees – write to your MP!

June 12th, 2012

When we moved to Oxford, we rented a flat. We found one we liked at a price we were prepared to pay. When we said “we’ll take it” to the letting agent, he said “that’ll be £210 in fees to secure the tenancy”. A couple of hours later he rang back: “Sorry, I should have explained – that’ll be £210 *each*”. What do you do for us, for this sum, I asked. “Oh, we draw up a contract, make sure that the place is fit for you to move in…” Oh, so all the things you ought to be doing anyway. Right. I was incandescent, but we paid. Adding insult to injury, the agent *didn’t* actually do their job properly and our moving-in had to be postponed by a week because the gas inspector (who’d seen the flat literally the Friday before were due to move in on the Monday) condemned the boiler installation and it took a week for the gas fitters to rectify it…

Now it’s payback time. I’ve written to my local (Labour) MP, suggesting that the government make this practice illegal in England & Wales. It already is illegal in Scotland. Here’s the letter that I wrote (with a few personal details removed). If you feel similarly about this issue, please write to your MP – the excellent WriteToThem.com will let you do this quickly and easily.

Here’s the letter I wrote. Please don’t copy it verbatim.

Dear Andrew Smith,

I’ve recently changed jobs and moved to Oxford, becoming a constituent
of yours. My partner and I initially rented a flat in Headington,
although we’ve now just bought a house in . Anyway, my
enquiry to you stems from our experience as tenants in Oxford. The
market for rented property is extremely busy, with high levels of
demand, and a large number of letting agencies operate within the city.
I was stunned to discover that the agency expected us to pay an upfront
fee to secure a tenancy on a rented flat – in fact, they wanted £210
from each of us – and checked up on whether this was a common practice.
It is, apparently, extremely common in England – but it is illegal in
Scotland. I last rented a house in London in 2005, and at that time
tenancy fees were not routinely charged by any of the agencies I dealt

I feel strongly that a letting agent is appointed by the landlord, and
acts in the landlord’s interests. They should therefore not be allowed
to charge the tenant a fee – as the tenants are not operating in a free
market. This situation is compounded by the fact that no agencies
include the associated fees in their online advertising – you only
find out exactly what fees they are charging once you make more
detailed enquiries.

Furthermore, the changes introduced by the last Labour administration
to provide statutory deposit protection have also contributed to fees
charged to tenants. There are three deposit protection schemes: one is
free, but keeps the money in escrow. The other two are insurance
schemes, which allow the landlord or agent to keep the deposit and
resulting interest themselves – these charge a fee for the deposit
management service. Our agency (and it seems that this is also common
practice) charged us an additional fee of £30 on top of the £420 we
paid up front in order to cover the cost of the deposit management. So,
as tenants we benefit from knowing that the deposit protection scheme
will ensure that our deposit is returned, but we are expected to cover
the agent’s costs in using an insurance-based deposit protection scheme
that allows them to profit from the interest on our deposit! Again, we
have no choice in the matter: the agency chooses to operate in this

I would suggest to you that in the present financial climate, with
increasing demands on the private rented housing sector, that
unscrupulous exploitation by letting agents is likely to become ever
more common. A manifesto commitment to prohibit agents charging any
fees to tenants in England and Wales would undoubtedly be very popular.

I look forward to hearing from you.

Yours sincerely,

Michael Prior-Jones