Emma Reynolds, Labour MP for Wolverhampton North East has today called for a vote in Parliament on an amendment to the Consumer Rights Bill to ban letting agent fees on tenants.Right now, tenants renting a property through letting agents are hit by huge upfront costs through unfair fees.

Over a third of renters have to borrow money to pay these fees. The average a tenant will pay is £350, but in high demand areas, they can be much more expensive. Fees have to be paid at the same time as the first month’s rent and a deposit, meaning that tenants face a significant upfront cost every time they move to a new property.

In many cases, tenants are also charged renewal fees at the end of their tenancy if they chose to stay in their current home. A survey of letting agents found that 94% imposed additional charges on tenants on top of the deposit and rent in advance.

Emma said: “Across the country, private renters are being hit hard by David Cameron’s cost-of-living crisis and by paying unfair fees to letting agents.

“Homebuyers rightly don’t have to pay the estate agent who is working on behalf of the seller of the property. However, in contrast, renters have to pay to get the keys to their rental property. The average upfront fees are £350 but in high demand areas, these fees can be much more expensive.

“Liberal Democrat and Conservative MPs have the chance to support Labour’s proposals to end these unfair fees, and give tenants an immediate saving and a fairer deal. If they refuse to back Labour’s proposals, they’ll have to explain why they won’t stand up for the nine million people who rent, around a third of whom are families with children.

“Generation rent needs proper protection against being ripped off. A Labour government will ban letting agent fees on tenants.”

May 2014