Call for fairer deal for private renters

Greater transparency and fairness for private renters has been called for by a group of Exeter charities.

The Advice Exeter partnership has today published its report into the Exeter lettings market.

The findings from the report will be used to lobby government and other organisations to get a better deal for private tenants.

Iain Large, partnership development officer for Advice Exeter, said: "We carried this research out in June and July last year. We have now processed it and are ready to use the information we have gathered to campaign for change in the market.

"More and more people are renting their homes. It is becoming less a transient state for students and young couples before occupier-ownership and increasingly a choice for a families looking for long-term accommodation."

Nationally, with nine million people now renting in Britain, the private rental sector has grown by 72 per cent since 2010.

The organisation gathered information from 46 agents letting properties in the Exeter area. These ranged from branches of large national organisations to local agents operating solely in the city.
Included in their findings were:

• Fees payable to agents ranged from £150 to £700. These fees did not include deposit, were non-refundable and did not contribute towards rent.
• Fees charged by Exeter agents were, on average 30 per cent (£130) cheaper than those charged by agents with regional or national coverage.
• A total of 48 per cent of the agents examined did not follow the current advertising rules which state fees must be listed alongside advertisements of the properties.
• Only 63 per cent of letting agents belonged to the correct ombudsman, despite this being a legal requirement from October 2014.

Iain added: ‘We believe fees should be set proportionately to the size and value of the property. Agents should not be able to charge fees above a certain proportion of the monthly rent. This would help ensure that those renting smaller properties on lower incomes are not excessively affected.

"Great uniformity across agents would also reduce variation in fees and increase fairness across the marketplace. Increase publicity and visibility of fees would improve competitiveness among agents."

Cllr Rob Hannaford, Exeter City Council Portfolio Holder for Housing and Customer Access, said he backed change in the sector.

He added: "For people on modest means these fees can make it very difficult to get into rented accommodation. It’s a disgrace that letting agencies can take advantage of people like this, so we are very supportive of this call for fairer treatment."

Community Housing Aid, which works to prevent homelessness across Devon, is a member of the Advice Exeter partnership. Its director, Stuart Hooper, said: ‘There are costs associated with letting any property such as references, credit checks and tenancy agreements. We work closely with local letting agents and recognise their need to charge for what they do – they are after all, businesses.

"What is unfair are prohibitive costs and additional fees which put an unnecessary barrier between prospective tenants (who can afford the rent) and landlords. As such, the only party that benefits are the letting agents."

The full report can be viewed on the Advice Exeter website at www.adviceexeter.org/uk

Advice Exeter is a partnership of the following charities: Age UK, Community Housing Aid, Exeter CAB, Exeter Youth Enquiry Service, Homemaker South West and Shelter.