Banning Letting Fees in Great Britain

[mancity1]

I wasn't aware until recently that in England agent's or landlords charge tenants a letting fee ( I assume its a one off payment ) and I assume the agent if involved passes on part or all that amount to the landlord in due course.

For those mooners who pay rent in the home they live in what is the typical letting fee charged?

Here in oz there is no such thing as a letting fee other than the agent taking a one off fee usually one or two weeks of the weekly rent amount from the landlord for their work in finding a new tenant for the property.

The tenant pays a bond ( usually a months worth of rent ) and recovers the bond upon vacating ( provided the condition of the property is as it was upon taking up residence.

My concern for the tenant is that if this fee is banned depriving the agent and or the landlord of this money the landlord will instruct the agent to increase the rent by more than letting fee over the tenants occupancy whenever possible making it less affordable for the tenant than otherwise.

Don't get me wrong I find it bizarre that a tenant would have to pay a letting fee in the first place and they should be banned for a number of reasons but knowing how agents work at least here in oz and how easy it is for many of them to rip off tenants and vendors alike surely this law should come with the rider that existing contracts be honoured and increases capped.

 

[squirtyflower]

Hahaha
The estate agent doesn't pass it on to the landlord, they sometimes charge the landlord as well. The agents wins out both ways.

I'd be happy to see them banned but only if they do it for both tenant and landlord.

 

[mancity1]

Hahaha
The estate agent doesn't pass it on to the landlord, they sometimes charge the landlord as well. The agents wins out both ways.

I'd be happy to see them banned but only if they do it for both tenant and landlord.

Shit the greedy so and so's.

Much better to get to know your tenants well and cut out the agent altogether once the tenants move in ffs.

They would never introduce legislation here to allow agents to charge a tenant a letting fee.

 

[Blue Smarties]

£70 per person if I remember correctly. That or £150 pp.

 

[mancity1]

£70 per person if I remember correctly. That or £150 pp.

Shit blue smarties that's steep do you know roughly the average weekly rental in say Manchester?

Obviously the specific location and size and condition of the property impact on the amount but an average would be appreciated.

 

[The Northern Baptist]

£70 per person if I remember correctly. That or £150 pp.

Its way more than that. Looking at a couple of ton these days, or £300 a couple

 

[jonmcity]

A drop in the ocean to the £11k a year the average pays in rent.

 

[mancity1]

Its way more than that. Looking at a couple of ton these days, or £300 a couple

Shit it gets worse the more the thread grows.

I know most agents are greedy mothers over here but that's obscene.

They will get the sale of most of their rentals come the time unless they mange the property miserably so why the need to charge both the tenant and the landlord it seems for the same service?

 

[mancity1]

A drop in the ocean to the £11k a year the average pays in rent.

True but if they charge the landlord as well and I assume they take a commission from each rental payment no wonder only agents would be against banning the fee.

 

[Gareth Barry Conlon]

All depends what and where but in Mcr i'd agree £300 to be about average. The fee in theory covers the administration involved in sorting out new tenants. The regulation is growing and there is a lot of red tape that has been introduced recently for landlords / agents, deposit protection and right to rent etc. The agency market is competitive but these fee have been growing while typical % rates charged to landlords have not changed or have even come down over recent years. Is what it is, outlawing them will just push up rents and % rates.