What are letting agent fees and how much do they charge to manage a property? We reveal the complex maze of charges
LETTING agent fees for tenants have jumped massively in the last five years.
Costs are up by as much as 60 per cent, with some people paying up to £700 in charges, according to Citizens Advice.
These fees often cover basic administration, references and credit checks.
The Chancellor Philip Hammond announced a ban on such fees in his first Autumn Statement today.
The news has sent the share price of Foxtons and other estate agents crashing this morning ahead of a potential crack-down on fees.
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At the moment letting agents are able to levy fees on tenants, on top of anything they pay in rent and as a deposit.
Under rules introduced in May last year they must publish these in full on their websites, as well as displaying them in their offices and making the charges clear to renters.
We took a look at how fees vary between four of the biggest agents to give you an idea of how complex it is for renters to compare.
FOXTONS
Foxtons is one of the most well-known estate agents with over 65 branches across the UK.
It was founded in 1981 and opened its first branch in Notting Hill gate. It has a range of fees, starting with £420 for administration and £165 for an end of tenancy inventory check.
Tenants could also be charged £65 for renewing their contract or £300 to change a name mid-term.
If you forget to pay your rent then you’ll get whacked with a £60 fee and any future references will incur a £60 charge.
A spokesperson from Foxtons said: "This was an unexpected announcement and the details and timing of the new policy are not yet known.
“As we get more clarity, we will review the impact to our customers and on our business."
HAMPTONS
Another of the big agents, Hamptons, has over 85 offices across the UK. It was started in 1830 when William Hampton opened a shop in Cranbourn Street in London, first selling furniture.
It charges £250 for admin but a further £125 for a reference, £25 for “right to rent” and £135.80 for inventory checks.
Other fees include £75 for leaving a contract early and £30 for references for future landlords.
It will also charge you two very confusing fees when you renew a contract. An initial £90 tenancy renewal memorandum and then a second charge of £150 to change the contract.
The Sun Online contacted Hamptons for a comment.
KNIGHT FRANK
The international agents, Knight Frank, have 411 offices in 59 countries and employ 14,000 people, including branches in England, Scotland and Wales.
It charges a £276 admin fee, a slightly lower fee of £48 for references but levies a £48 fee for protecting your deposit (a legal requirement) and £48 if you need a guarantor for a contract.
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It also charges £267 if you need to change the names on the contract, e.g, if you were to leave early and find a replacement.
The Sun Online contacted Knight Frank for a comment.
LUDLOW THOMPSON
Ludlow Thompson was established in 1993. It charges a £420 admin fee and a whopping £432 if you decide to move out and need to change the name on a contract.
A mid-term inspection fee of £141.60 is also levied, while inventory checks cost £114.40.
If you want to renew your tenancy then you’ll get charged £114.
Stephen Ludlow, chairman at Ludlow Thompson, said: "There is a risk that, as a result, some letting agencies will cut back on investment in marketing , training and quality control which that could reduce stock leading to an increase in rents and a reduction in customer service delivery."
"Without reputable letting agents fully committed to the sector we will potentially see more lettings back in the hands of unregulated private landlords, and leaving tenants with far lower levels of protection than at present."
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