Hilary Benn – 2014 Parliamentary Question to the Department for Communities and Local Government

The below Parliamentary question was asked by Hilary Benn on 2014-06-24.

To ask the Secretary of State for Communities and Local Government, what estimate his Department has made of the average lettings agency fees charged to tenants in the private rented sector (a) at the start of a new tenancy and (b) when a tenancy is renewed.

Kris Hopkins

My Department has not made its own estimate of the average lettings agency fees charged to tenants in the private rented sector but has taken note of the figures reported by independent organisations, such as the Office of Fair Trading, Shelter and Which.

The Government is currently legislating through the Consumer Rights Bill to ensure there is full transparency on fees charged by all letting agencies, ending hidden fees.

By contrast, I would observe that the Royal Institution of Chartered Surveyors (RICS) has commented that the policy proposals of HM Opposition on fees would harm tenants, as it would lead to: “increases in rents to cover the additional costs visited upon landlords” and a “reduction in supply” (RICS, Letting agent fees for tenants: a tale of two amendments, 15 May 2014).