LETTING AGENTS FORCED TO COME CLEAN ON CHARGES TO TENANTS

The National Union of Students (NUS) today welcomed a ruling from the Advertising Standards Authority (ASA) that letting agents are required to disclose what compulsory fees will be charged when letting a property.

Students hunting for private rented properties have often faced large unexpected and unexplained fees from agents exploiting their inexperience in the lettings market and a clamour for student properties as students all search for next year’s accommodation simultaneously.

NUS has been calling for tenants in the UK to be protected from all fees beyond a deposit as is currently the case in Scotland and will be giving evidence about this to the Communities and Local Government Select Committee inquiry into the private rented sector.

Many students’ unions have responded to problems with letting agents by setting up their own letting agencies, providing quality marks to agencies who act responsibly or recommending a quality agency to students.

Pete Mercer, NUS Vice-President (Welfare), said:

“It’s great to see that students and other tenants will now be better protected from unscrupulous agencies who often charge tenants and landlords twice for the same undefined ‘administration’.

“Hopefully this means that tenants will be able to see what costs they will face before they hand over any money.

“However, more needs to be done to regulate the fees charged by letting agents. Currently anyone can call themselves a letting agent and charge whatever fees they want. There is still no clarity about what these fees are for. Holding deposits often have to be handed over before an offer is made on a property and these can be forfeit if the tenancy falls through for any reason at a later date.”