Consumer magazine Which? has called for a ban on tenant admin fees. The magazine included the charges in its round-up of ‘sneaky fees that should be banned’, which also included BT Broadband exit fees and mortgage exit fees.
The call comes a year after tenant fees were banned in Scotland in June 2015, and calls for a standard practice across the UK and better regulation in the private sector.
The well-known consumer magazine said that letting agents charge fees to both the tenants and landlords, and that it was hard not to assume some fees and charges were exploitative.
“Admin fees are charged by a majority of agents, which covers things such as drawing up a tenancy, inventories and checking tenant references,” said Which?
“This can cost up to £500 for an individual every time they move. Landlords usually pay admin fees too, and with the cost of checking credit ratings relatively low, it’s hard not to assume that some agents are simply exploiting these fees and charges.
“Better regulation is needed in the private sector. Scotland banned letting agents from charging tenants four years ago – Which? thinks this should mirrored in the rest of the UK.”