Labour is to try to force a vote in the Commons next Tuesday on banning fees charged by letting agents to tenants.
The ban could be in place within months. Industry leaders have hit
out at the proposals, pointing out that bans on fees are likely to
result in raised fees for landlords – who would pass the increases on to
tenants in the form of higher rents.
Ian Potter, managing director of ARLA, called the latest move – unveiled today – deeply worrying.
Ed Miliband believes he could get support from both the Tories and
Lib Dems, and that legislation to ban fees could be in place before next
year’s General Election.
David Cameron has been pointedly silent on the specific matter of
letting agents’ fees, although his party has repeatedly said it will not
legislate the lettings industry itself.
On Wednesday, during Prime Minister’s Questions, Cameron rejected
another Labour idea – that of rent controls – but did suggest he would
be prepared to work with Labour on proposals for longer tenancies.
Miliband will table the proposed ban as an amendment to the Consumer Rights Bill in the Commons.
Miliband said: “If the Conservatives and Liberal Democrats support us
on Tuesday we can make this happen now. That could be implemented
straight away.
“David Cameron seemed to be warming to Labour’s policy on rents. Now he has a chance to actually vote for it.”
Shadow housing minister Emma Reynolds said: “If the Tories and
Liberal Demcrats refuse to back Labour’s proposals, they’ll have to
explain why they won’t stand up for the nine million people who rent.”
Potter said: “Pledging to transfer fees to landlords or calling for
outright bans will increase rents as landlords and agents seek to
achieve returns. Fees are not arbitrary or unnecessary; they represent a
business cost that Labour has failed to recognise.”
Under the likely proposed amendment, letting agents could only
require tenants to pay a month’s rent upfront and a deposit. They would
not be able to charge for services such as administration, referencing
or check-in inventories.
Following next Tuesday’s vote, the Consumer Rights Bill would then
have a third reading in the Commons, before going to the Lords for
consideration.
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