x
By using this website, you agree to our use of cookies to enhance your experience.

A BBC investigation claims to have uncovered widespread evidence of letting agents ripping off tenants.

It accuses rogue agents of "fraudulently taking thousands of pounds from tenants as a holding fee, not letting them move in and keeping the money".

BBC's Newsbeat said a Freedom of Information request found that 71 of the 200 trading standards teams in England had received at least one complaint about this issue.

It also reported that the Trading Standards Institute said there could be many more victims due to the way in which information was recorded.

The BBC's FoI request asked how many complaints had been seen about letting agents charging holding deposits or other admin fees, but not letting prospective tenants move in and refusing to give them their money back. It received 113 responses.

Often, however, no action was taken either by Trading Standards or police as it was considered a "civil matter".

Comments

  • icon

    As a general rule for journalists, if you here something on the BBC be suspicious. If it is on the BBC and in association with Shelter, RSPCA, a third rate political party or something similar then do not publish it unless you re-investigate from top to bottom. Your reputation depends on it.

    The phrase, "The BBC claims to have discovered...." makes me cringe and stop reading then and there.

    I made the comment that these 'non agents are not letting agents but fraudsters' on this site a couple of months ago but here it is again!

    • 05 March 2014 11:21 AM
  • icon

    No disrespect, but if Eric can get this in context, why cant EAT Ros would.

    • 04 March 2014 21:27 PM
  • icon

    Shame EAT didn't dig that bit deeper as the real story is the Beeb's misreporting which would be supportive of industry rather than propagating a misleading article.

    • 04 March 2014 13:59 PM
  • icon

    A holding deposit or reservation fee is not illegal. The link below demonstrates that. Deposits are protected by Law under the Housing act in all AST's. Until there is an AST then this doesn't apply. These fees MUST be returned if the let doesn't proceed unless there are fair and equitable grounds to make a deduction.

    From My Deposits Blog:

    [i]The point is that holding deposits are different from tenancy deposits. It is our interpretation that landlords and letting agents are NOT legally required to protect a holding deposit in the same way that they must with a tenancy deposit.[/i]

    • 04 March 2014 10:21 AM
  • icon

    It's good that EW looked a little further than the dramatic headline. He is right - this has nothing to do with any lettings agent. The woman in the interview seemed to imply she knew it was too good to be true - TSO adice would be in such cases it usually it.

    The key here is that you can't readily stop con-men. You can however try and educate consumers to only use accredited agents as SAFEagent are working towards.

    • 04 March 2014 10:02 AM
  • icon

    The industry should make a formal complaint to the BBC regarding this report.

    They have basically allowed Shelter to broadcast their agenda and misrepresent letting agents completely unchallenged.

    The BBC is meant to provide fair and balanced journalism but there is no comments from either letting agents or trade bodies to respond to these accusations from Shelter who I am fast coming to the conclusion are professional liars.

    Finally the report is also factually inaccurate as holding deposits are not illegal in Scotland.

    • 04 March 2014 10:01 AM
  • icon

    Hi Industry Observer - I am good thanks.

    Two points - firstly, this was never about letting agents. If it were, they would have been named and shamed. It was about con men pretending to be agents. This is not unique to lettings.

    Secondly this was never about Holding Deposits aka reservation fees - it was about move-in monies including first months rent. PS RE: use of the term 'Holding Deposit' - Quote "

    Holding deposits

    Your landlord doesnt have to protect a holding deposit (money you pay to hold a property before an agreement is signed). However, once you become a tenant, the holding deposit becomes a deposit, which they must protect.

    For full context click [url="Holding deposits Your landlord doesnt have to protect a holding deposit (money you pay to hold a property before an agreement is signed). However, once you become a tenant, the holding deposit becomes a deposit, which they must protect."]here[/url]

    • 04 March 2014 09:52 AM
  • icon

    It's a 7 day wonder and will go away as quickly as it came.

    • 04 March 2014 09:18 AM
  • icon

    Hi Eric How are you

    Perhaps if the CLG and The Dispute Service didn't crow about holding fees not being deposits when the Law is very unclear on it and above all the position is not so certain, and if holding deposits were either made illegal or deemed a deposit or part deposit and had to be protected, it might help.

    The whole issue on holding deposits is one of amounts and Courts have commented on this, though only lower Courts. The more you take the less like a holding fee (never call it a deposit) and the more like a deposit the transaction looks

    • 04 March 2014 09:12 AM
  • icon

    I couldn't agree more with Eric. Lets not forget that Top Gear received more complaints from one episode of the show than the entire Uk lettings industry!

    • 04 March 2014 09:12 AM
  • icon

    This story on 27th February was not actually about holding deposits as we know them. The report "BBC finds fraudulent letting agents holding rent deposits" actually refers to so called agents, with no offices, taking what we call move in monies and then stealing it when it becomes clear there is no property. In some cases they do this multiple times on one property.

    The second article interviews a lady who refers to an online business and in her own words "it seemed too good to be true"

    In neither case is there actually any agent named as these people don't appear to be agents anymore than other fraudsters are what they purport to be. In fact, it seems very harsh reporting on the industry when you actually look at the detail.

    Visit [url="http://www.bbc.co.uk/search/news/q=lettings%20agents"]here[/url] for both

    • 04 March 2014 08:24 AM
MovePal MovePal MovePal