Andrew Dismore

A copy of the open letter is below.

Dear Mr Offord MP

Nine million people are living in rented homes today, more than a million families, and more than two million children. With tenants in Hendon facing rip-off fees from lettings agents and insecure tenancies, Labour has announced the biggest change in a generation to make the system fairer for renters.

On Tuesday, MPs of all political parties will have the chance to implement an important part of this plan – banning letting agent fees to tenants.

Tenants are hit by huge upfront costs through unfair letting agent fees. A survey of letting agents found that 94 per cent imposed additional charges on tenants on top of the deposit and rent in advance. Fees are extremely variable, but on average tenants are forced to pay £355 to their lettings agents every time they move house with some paying as much as £500. These costs are putting addition pressure on renters with 54 per cent of people surveyed saying they faced financial difficulties covering fees.

The amendment to the Consumer Rights Bill, to be voted on this Tuesday, will give all MPs the chance to stand with renters and make a real difference to their lives by banning letting fees to tenants.

I’m writing to call on you to support the amendment. The next Labour government will pass legislation to ban letting agent fees for tenants and to introduce longer-term tenancies with predictable rents. But on Tuesday all MPs will have a chance to stand for the nine million people who rent. If you fail to vote for the amendment, all those who rent inHendon will be entitled to ask why you won’t stand up for them.

In light of the public interest in this matter I am releasing a copy of this letter to the press.

Yours sincerely

Andrew Dismore

Labour Parliamentary Candidate for Hendon

 

Editors’ notes:

Labour will seek to amend the Consumer Rights Bill when it is debated in the House of Commons at report stage by introducing an amendment to ban letting agent fees for tenants.

 

Details

 

Tenants are hit by huge upfront costs through unfair letting agent fees. A survey of letting agents found that 94 per cent imposed additional charges on tenants on top of the deposit and rent in advance. Fees are extremely variable, but on average tenants are forced to pay £355 to their lettings agents every time they move house with some paying as much as £500. These costs are putting addition pressure on renters with 54 per cent of people surveyed saying they faced financial difficulties covering fees.

 

Labour’s three key reforms to the private rented sector announced last week by Ed Miliband:

 

Ban letting agents’ fees for tenants:

 

Landlords would continue to pay charges just as people selling houses pay fees to estate agents. But letting agents would be banned from charging fees which can reach up to £500 to tenants.

 

This will save people entering into a new tenancy an average of £350.

 

Introduce long-term three-year tenancies:

 

Tenancies would start with a six-month probation period at the end of which the landlord would be able to terminate the contract if tenant failed the probation (e.g. if there are rent arrears or anti-social behaviour). After the six months, the tenancy would automatically run for a further two and a half years

Tenants would be able to terminate contracts after the first six months with one month notice as they can now.

But landlords would be able to terminate contracts with two months’ notice if they can have good reason.

Predictable rents:

Landlords and tenants will set initial rents based on market value and conduct a rent review no more frequently than once a year.

Rents could be reviewed downwards, stay the same, or rise subject to market conditions.

Any increase will be based on a benchmark, such as average market rents or inflation, and rents would not be allowed to rise above this.

ends