More than four in 10 of the UK’s private rented sector (PRS) tenants are being hit by an average of £298 in letting agent and landlord fees every time they move home, a survey has revealed.
According to SpareRoom.co.uk’s poll of 4,000 flat and house sharers, alongside the fees, tenants are typically asked for a deposit of £840 and a month’s rent in advance – meaning that people moving in the PRS are being hit with upfront costs of £1,700.
According to SpareRoom, the vast costs explain why 87% of tenants would rather deal directly with landlords, who typically charge lower fees than letting agents, or none at all.
The most common fees are for ‘admin costs’. Two thirds (66%) of those who paid fees when moving into their current home were forced to cover admin costs. And, of those who paid fees, half (50%) said they had to pay to reserve a room or property once they decided to take it, while almost half (47%) said they were charged for drawing up tenancy agreements and/or inventories.
Matt Hutchinson, director of SpareRoom.co.uk, said: “Nothing unites renters quite like a shared hatred of unexplained tenancy fees. So much so they’ve already been made illegal in Scotland.
“Most tenants have to find a deposit before they get their last one back from their previous landlord, so adding almost £300 in fees to the equation can make the difference between being able to afford to move and having to stay put.
“In the wider world, consumers get to choose which supplier to use based on a variety of factors, including price and service but, when it comes to renting, tenants have no choice but to use the agent marketing the property they want. This means most have little choice over whether they pay fees or not. As of April 2014, agents must, by law, publish a full tariff of their fees. Although this means greater transparency for tenants, the government still isn’t doing enough to clamp down on excessive or unfair fees. Always ask landlords and agents about fees upfront and negotiate as early on in the process as possible.”
Seb Klier, policy manager of tenant campaign group Generation Rent, said: “In the search for a new home, letting fees come way down the list of things that renters look for, effectively giving letting agents a captive market to exploit with a wide range of spurious charges. By ending fees for tenants and making landlords alone pay for the services of agents, government would make it cheaper for renters to move and help to create a genuinely competitive lettings market.”
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