Tenants and landlords fees not being disclosed

The majority of landlords still believe that a cap on letting agent fees will be more effective than an outright ban, according to recent research

Tenants and landlords fees not being disclosed

The government is being urged by the Residential Landlords Association (RLA) to do more to enforce compulsory fee disclosure.

Since May 2015, as part of the Consumer Rights Act, it has been mandatory for letting agents to publish all details of the fees they charge to landlords and tenants.

According to the National Approved Letting Scheme (NALS), since it became a legal requirement for agents to display fees over two years ago, 93% of councils have failed to issue a single financial penalty to an agent for breaking the law.

Research shows that just three penalty notices had been served across the whole of England for failure to display fees.

As MPs debate letting agent fees in Parliament today, the RLA is urging the government to better enforce existing regulations designed to improve transparency around fees before looking to introduce a blanket ban.

Other key findings:

•  force agents to become more competitive and provide better service.
• landlords feel that the deposit cap of one month’s rent would make them less likely to let properties to tenants with a poor credit history.
• landlords agree that the deposit cap will make them less likely to let to tenants with pets or children.

Letting agents will need to become more efficient, and adopt technologies and new processes that will save money for all parties involved, including tenants.

 

< Back to blog