Letting agents to publicise fees charged to landlords and tenants

As from today (27th May 2015), it is a statutory duty for letting agents to fully publicise the fees they charge to both landlords and tenants. Under the Consumer Rights Act 2015, letting agents must visibly display a list of their fees at each of their offices, including their website.


These new requirements have been issued by the Department for Communities and Local Government with some input from the Advertising Standards Authority. The new guidelines state that, "all fees, charges or penalties (however expressed) which are payable to the agent by a landlord or tenant in respect of letting agency work and property management work carried out by the agent in connection with an assured tenancy. This includes fees, charges or penalties in connection with an assured tenancy of a property or a property that is, has been or is proposed to be let under an assured tenancy.”


All fees must also be inclusive of VAT. Letting agents however, do not need to publicise the rent which is payable to a landlord or the tenancy deposit which is taken as security against any damage or violation of the tenancy agreement.



These guidelines are enforced by Trading Standards. Non-compliance will result in a fine of up to £5,000. Lower fines will only be applicable to those in extenuating circumstances. Common excuses including, ‘I did not know about the law’ or ‘I did not know what to do,’ are no longer acceptable.


This change now means that a breakdown in costs are required. All fees should be clear without surcharges or hidden costs. Fees for things like 'administration fees' will no longer be acceptable, with all charges being displayed inclusive of tax.


In addition to these changes, letting agents must also display which redress scheme they have joined. There are three redress schemes and they include:


- The Property Ombudsman


- The Property Redress Scheme or Ombudsman Services


- Client Money Protection (CMP)



But what do you think? Start your own discussion in the LawStore Social Landlord and Tenant forum.

Tenants Vs. Landlords

 

A new survey conducted by Ocean Finance reveals that half of those who rent privately have been ‘ripped off’ by either their landlord or letting agent.  The poll conducted from 2,000 UK adults shows a high level of dissatisfaction amongst tenants in regards to the service they receive.  The reasons given were:

·         53% of tenants were unhappy due to a failure to do repairs

·         47% of tenants were unhappy by the delays in getting things fixed

·         37% of tenants were unhappy about tenancy deposits not being refunded

·         25% of tenants were unhappy with the unreasonable reductions from the tenancy deposit

·         23% of tenants were unhappy with the unreasonable  increases in rent

·         22% of tenants were unhappy being handed unreasonable fees to start the tenancy agreement process.

As a result, Citizens Advice Bureau has highlighted that there has been a growing concern among private tenants who are facing evictions despite being up to date on their rent payments. In addition to this, the CAB is also witnessing a 38% increase in those without rent arrears who have been threatened with an eviction. According to the CAB, over 5,000 issues in regards to tenant evictions have been reported in both 2013 and 2014. Around 3,750 issues had been reported the year before.

So what about buying a home?

Latest statistics show that more and more people are teaming up in order to buy a home. New research conducted by Santander Insurance shows that 22% of people who wish to make a joint purchase within the next 2 years will do so with their unmarried partner. 13% of those wishing to purchase will share the purchase with their parents, whilst 4% will make a joint purchase with a friend or other relative.

23% believe that the main reason for making a joint purchase is that it is the only way for them to get their foot on the property ladder. Other statistics show that only one fifth of those planning to make a joint purchase will do so as they simply want to live with that person. Whilst 16% will make a joint purchase as they believe that it will leave them less financially stretched. And finally, 15% will do so in order to afford a larger property.

So whether you are a tenant or a landlord in need of some legal advice, contact us at LawStore Conveyancing today for a straightforward and jargon free solution.  If you’re thinking of making a joint purchase on a property then visit us in store today to ensure all the legal forms needed are completed and up to date. Or simple call us on 0845 603 6544 or visit us online.

At LawStore conveyancing, we offer a fast and cost effective solution to all your conveyancing needs. Get a free online conveyancing quote when you visit us online and see how much we can save you.