A council is exploring setting up its own letting agency because it claims it wants to save' private sector tenants from what it calls extortion' by some existing agents.
The proposal by Cambridge council follows a survey by Labour of 91 lettings agencies, the results of which claimed tenants had to pay an average of £902 in up-front fees covering deposits, administration charges, and payments for reference checks and credit security.
All Cambridge renters deserve the option of a letting agent that will not profiteer and will prevent people having to put up with the scourge of all these fees and inappropriate practices according to Labour councillor George Owers.
He says letting agents can in some circumstances extort as much money as they possibly can in hidden fees and charges. He claims the council's intervention may force some letting agents to change their practices.
Earlier this year five Cambridgeshire local authorities launched what they call a social lettings agency' to help homeless single people and families get a good home in the private rented sector.
Based within Cambridge council, it offers landlords a guaranteed monthly income - with no fee taken out according to council publicity - plus a full management service in what the authority describes as an "unbeatable, worry-free deal". In return, landlords will provide homes for tenants who would otherwise be homeless.
The new service is called Town Hall Lettings and agrees a market rent for a property and then agrees a length for the agreement with the owner.
Cambridge council is working with South Cambridgeshire, Huntingdonshire, Fenland and East Cambridgeshire councils using a grant from the Department of Communities and Local Government to set up the service.
Comments
Good idea alreadly proven to work in other areas!!!
It never ceases to amaze me the rubbish these councils come up with!:D
As everyone has already pointed out a deposit is not a fee and again based on the average rent and deposit the fees are very low. Perhaps they expect all agents to work for free... just like they do... oh no my mistake we all pay extremely high council tax rates and taxes to pay their wages and expenses. In fact we probably all just paid for this unrealistic report where labour expect us to continue to pay for people that can't help themselves. Yes there are vunerable people out there that need help but if the councils stopped housing people that shouldn't be entitled to help we wouldn't have this housing problem in the first place!!!!!!!!!! Rant over.
Just like to add my voice to those dissenting that a deposit is not an up front fee.
Applying for a grant (not loan) to set up this service Smacks of unfair competition to me and could be actionable.
Help to kick existing stupid and ignorant councilors by voting UKIP next month
Quite.
DEPOSITS - key word. The fact remains this article read by those not in the industry will again cause anger/fear towards the typical high street agent as most won't notice this key word.
Hidden fees all agents have to declare their fees upfront, if they don't there is already legislation to deal with this. As usual a Labour councillor who has no idea what they are talking about
"...pay an average of 902 in up-front fees covering [b]deposits[/b], administration charges, and payments for reference checks and credit security."
How can you include deposits when discussing upfront [b]fees[/b]! With a UK average rent of approximately 700 and deposits at the least being equal to one month rent, but normally higher, that makes the average upfront fees a much more palatable 202.