1 in 4 feel they have been ripped off by letting agents

Published by Max Salsbury for 24dash.com in Housing and also in Communities, Finance

Almost a quarter of British people have been ripped off by a letting agent, new research has revealed.

A YouGov poll of 5379 adults found that 23% said they had been ripped off by letting agents in England.

The most common fee that people felt they had been unfairly charged for was 'administration' (14%), followed by credit checks (10%) and then contract renewal fees (8%).

The research, which was commissioned by homelessness charity Shelter, uncovered cases in which renters were charged over £150 a year for repeat credit checks. Shelter research suggests that credit checks cost letting agents between £8 and £25 to run.

Some also reported being charged £100 just for viewing a property, whilst some ex-letting staff admitted fabricating fees to increase their profits.

Kay Boycott, Director of Campaigns, Policy and Communications at Shelter, said: “It’s scandalous that some letting agents are creaming off huge profits from the boom in private renting by charging both tenants and landlords fees that are totally out of proportion to the service they provide.
 
“With our investigation uncovering unexplained charges of over £500, we need to make sure that letting agent fees are reasonable. With costs like these, on top of the sky-high rents that families already face, it’s no surprise that many dread the day they have to look for a new place to rent.”

Angelique Atkinson, a renter from Hampshire, paid £540 in administration costs when she rented a home with her partner. She said: “We didn’t receive any justification for these extortionate fees, and ended up having to pay nearly £3,000 upfront, making a huge dent in our finances. I have nowhere I can complain to and be taken seriously. We can’t afford to buy our own home; renting is so expensive that it seems impossible to save for a deposit. The rental market is a horrible place right now.”

Shelter’s investigations also found that landlords are likely to have been ripped off by letting agents. Abdul Motin, a landlord from London, said: “A letting agent who was supposed to be renting out my home has ripped me off for £9,000, and we’re now struggling to meet the mortgage. The letting agents falsified the tenants’ references, withheld the rent and deposit from me, and have now dissolved their company. This is the only property I own and I’ll never rent it out again. This has been a living nightmare for me and my family.”