What are the new laws regarding letting agent fees and how might the ban on fees affect me?
Proposals to ban hidden charges for admin and credit checks could be stamped out if a new law going through Parliament is passed
A PROPOSED crackdown on unfair letting agent fees could save renters hundreds of pounds.
Legislation is going through parliament following the Autumn Statement 2016, when Chancellor Philip Hammond announced he would push for a fairer system for renters.
But what could the new law look like and what will it mean for people thinking of renting?
What are letting agent fees?
Letting agent fees are charges imposed on tenants for things like preparing tenancy agreements, contacting referees and performing credit checks.
They have surged to an average of £337 per tenancy, according to Citizens Advice. Some people pay up to £700.
A report from the charity Shelter found that nearly 1 in 4 people in England and Wales feel that they have been charged unfair fees by a letting agent.
Fee levels vary considerably and the charity found that 1 in 7 tenants pay more than £500.
Agents have been accused of taking advantage of the housing crisis to squeeze extra money from people desperate to secure accommodation.
The fees are lucrative for letting agents dealing with 4.3million households in private rented accommodation.
Who are the changes meant to help?
The proposed ban on letting agent charges which is being put through Parliament will be welcomed by the over four million households in private rented accommodation, more than a million of whom move home every year.
Young people complain that sky-high fees — such as £420 to change the name on a tenancy agreement and £330 to set up a tenancy — make it harder for them to save a deposit to buy their own place.
More than a quarter of a million people signed a petition that was delivered to Downing Street in October 2016 demanding that the fees be banned.
Vicky Spratt, 28, organised the petition after paying more than £500 in fees. She said: "There is no silver bullet to solve the housing crisis but banning rip-off fees is a significant step towards making the rental sector work."
Shelter, the housing charity, said that half of renters it surveyed had been asked to pay fees that they thought were too high, with many having to borrow money every time they moved.
So what could the new clampdown mean?
The proposed ban will stop hidden charges and end tenants being hit by costly upfront payments that can be difficult to afford, the government has said.
It will bring an end to some agents exploiting their role between renters and landlords.
And it will banish unfair charges being imposed and stop those agents that double charge tenants and property owners for the same service.
Landlords are being hit with dubious fees, which if passed the new law will aim to stamp out.
Housing Minister Gavin Barwell said: "We’re determined to make all types of housing more affordable and secure for ordinary working people.
"Tenants should only be required to pay their rent alongside a refundable deposit and not face hidden fees."
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