Proposals by the Government to improve the transparency of fees charged by letting agents have been welcomed by landlords.
Following the Labour party’s decision to seek an amendment to the Consumer Rights Bill to end charges paid by tenants to letting agents, the Government has announced that it will instead improve the transparency of fees charged by agents.
Under the proposals the Government will bring forward its own amendment to the legislation – a move welcomed by the Residential Landlords Association (RLA).
Whilst the Advertising Standards Authority currently only requires letting agents to list compulsory charges to the tenant upfront in advertisements, the Government’s amendment will compel letting agents to publish a full tariff of their fees – both on their websites and prominently in their offices. Any agent found not to be complying with these new rules will face a fine – a much stricter penalty than currently exists.
Commenting on the announcement, RLA policy director, Richard Jones said: “Labour’s plans would have only served to increase tenant rents as many landlords would in all likelihood have passed the extra costs of having to shoulder all charges levied by letting agents onto tenants.
“This week’s announcement will prove good for tenants and landlords alike and we look forward to working constructively to see its full and successful implementation.”