Emma Reynolds MP, Labour’s Shadow Housing Minister, speaking ahead of a commons vote on Labour’s plans to stop unfair letting agent fees, said:

“Across the country, private renters are being hit hard by David Cameron’s cost-of-living crisis and 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.”

Labour will seek to amend the Consumer Rights Bill when in is debated in the House of Commons at report stage on Tuesday 13th May.

Labour’s amendment to the Consumer Rights Bill:

Prohibition of fees in contracts for services: letting of residential accommodation

Hilary Benn [R]

Emma Reynolds

Stella Creasy

NC22

To move the following Clause:—

‘(1) The provisions in this section apply to a contract for a trader to supply a service

in connection with the letting of a residential premises.

(2) Subject to the provisions of this section, any person who demands or accepts

payment of any sum of money from a person (“P”) for services in connection with

a contract for the letting of residential premises shall be guilty of an offence.

(3) For the purposes of subsection (2), P is any person—

(a) who seeks to enter a contract to let residential accommodation, or

(b) who has a tenancy of, or other right or permission to occupy, residential

premises.

(4) For the purposes of subsection (2)—

“letting” shall include any service provided in connection with the advertisement

or marketing of residential accommodation or with the grant or renewal of a

tenancy;

“services shall —

(a) include, and are not limited to—

(i) the registration of persons seeking accommodation,

(ii) the selection of prospective occupiers, and

(iii) any work associated with the production or completion of

written agreements or other relevant documents.

(b) not include credit checks of person seeking accommodation.

(5) Where a person unlawfully demands or accepts payment under this section in the

course of his employment, the employer or principal of that person shall also be

guilty of an offence.

(6) A person shall not be guilty of an offence under this section by reason of his

demanding or accepting payment of rent or a tenancy deposit within the meaning

of section 212(8) of the Housing Act 2004.

(7) A person shall not be guilty of an offence under this section by reason of his

demanding or accepting a holding deposit.

(8) A “holding deposit” for the purposes of subsection (7) is—

(a) a sum of money demanded of or accepted from a person, in good faith for

the purpose of giving priority to that person in relation to the letting of a

specific property, which is to be credited towards the tenancy deposit or

rent upon the grant of the tenancy of that property, and

(b) not greater than two weeks rent for the accommodation in question.

(9) Costs incurred by person seeking accommodation for the undertaking of credit

checks shall be reimbursed upon the signing of a tenancy agreement.

(10) In this section, any reference to the grant or renewal of a tenancy shall include the

grant or renewal or continuance of a lease or licence of, or other right or

permission to occupy, residential premises.

(11) In this section “rent” shall include any occupation charge under a licence.’.