Peers failed to back Labour's amendments to the Consumer Rights Bill in the House of Lords on Monday evening.
The opposition was calling for two amendments to the bill relating to estate and letting agents. Firstly to ban sale by tender transactions, and secondly to ban letting agents charging tenants fees.
Emma Reynolds MP, Labour's shadow housing minister, said: "It's very disappointing that Lib Dem and Tory Peers failed to back Labour's measures to tackle rip-off letting and estate agents.
"Tonight Labour stood up for consumers who want a fairer housing market but the Lib Dems and Tories failed to do the same.
"The next Labour Government will ban letting agent fees on tenants, end the practice of double charging and improve consumer protection."
Stella Creasy MP, Labour's shadow consumer affairs minister, said: "There is a clear conflict of interest when an agent can charge two people for the same service- Labour has a clear plan for addressing these problems.
"By their opposition to these proposals this Government has shown it has no understanding of the impact of the rip off fees estate agents and letting agents charge and it is consumers who end up paying an extortionate price for their failure to act."
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Comments
In total agreement with Mr James Williams comments; have labour researched the pros and cons of such a move. It could potentially disadvantage the very people who they think they will be helping. The proposal would have a detrimental financial impact on either the landlord, agent or tenant. Maybe the minister needs to consult a reputable agent and industry bodies before putting forward a proposal which is potentially counterproductive. It is a landlord and tenants responsibility to choose an agent which fits their financial budget. A credible Agent should publish their fees in their terms of business, it is upto the consumer to research the market just like one does when buying another form of product or service.
[i]"Who advises this Creasey woman" [/i] - I suspect you need look no further than Generation Rent, though I maybe wrong.
However, you could equally ask the same question of the Tories and the Lib Dems, to which answer would appear to be, no one that has the remotest idea of the industry dynamic or its component parts, particularly accreditation and the workings of CMP.
Well said James Williams. Have a look at our blogs to see how my Editor feels about a Labour Government.
I quote Stella Creasy (who seems to have no understanding of the PRS):
[i][/i]"There is a clear conflict of interest when an agent can charge two people for the same service"[i][/i] We don't !!! We share the cost of the service between the Landlord and the Tenant !
Okay so end double-charging when you get into power then. All that will happen is the cost will be doubled for the Tenant and the Landlord will save money. Hardly championing your cause to help Tenants
I am rapidly getting seriously worried about Labour getting into power next May. Not JUST because I think they screwed the country in their last term but also because of their recent apparent TOTAL lack of understanding when trying to meddle with the PRS. Who the hell advises this Creasy woman
Labour seem to want to help the "poor victimised tenant up against the capitalist Landlord". Well it was the Labour government who shafted housing benefit tenants by paying LHA direct to the tenants and forcing over 80% of Landlords in the PRS to boycott housing benefit tenants. I remember the housing office visiting my agency announcing this plan. I told him what would happen and, guess what, it came true!
Labour are the champions for "their tenants" but in actual fact, their past and proposed policies will do a disservice to Tenants. As far as a default 3 year fixed term - I am not going there because I have ranted enough :p