My Lords, I will speak in support of Amendment 44D. Like others before me, I have recently been engaged in trying to find alternative accommodation in London. I spent mornings going around the letting agencies looking for suitable properties. The difference in the
range of fees and expectations of me were enormous, but it was only by asking that I found out what fees the agents would be charging and at which stage. Rarely was this information volunteered.
Once I had found a property that I thought would suit, I was told I would need to put down a holding deposit. Not having previously been involved in renting a flat, this was a new experience for me. Obviously those of us who hail from the country are not used to your London ways. I did some research and found that, unless I put down this deposit, I would be unlikely to secure the flat while the necessary references and checks on me were taking place. I was assured that on completion date the holding deposit would be deducted from the rental deposit required, but I did blanch somewhat at being asked for six weeks’ rent upfront in addition to the first month’s rent. However, this is how things are done and so I will be complying. I move at the beginning of December.
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People who live in London are well used to agents fees but they do not find them acceptable. A gentleman from London has made contact with us. He is moving homes on 15 December and will have been charged over £300 in agency fees between two property agents. In his view, these fees are totally unconnected to any actual letting costs and are unnecessary and unjust. I agree with him. He and his flatmates are all fortunate people. They all work for a living and consider themselves a hard-working family. Despite this, none of them could ever afford to own the rental home they live in and they have little choice but to rent privately in London.
This is a depressing prospect for many families and working individuals. If people have no option but to rent, it is unreasonable that they should be charged large fees just for being “introduced” to a property. The agents will also be charging the landlord a fee for effecting the introduction. This could be a double whammy, as the landlord passes this fee on to the tenant through the rent, although, as we have heard, this has not happened in Scotland.
While I accept that fees may, in some cases, be necessary, far more transparency is needed. I would very much like to see an end to the practice of agency fees in England and Wales and I hope that my noble friend the Minister will agree with me.