08:08 Monday 6th October 2014
BBC Radio Cambridgeshire
DOTTY MCLEOD: People in Cambridgeshire are being ripped off by unscrupulous letting agents charging excessive fees.That’s the fear of the MP for Cambridge, who wants to see a code of practice adopted by the lettings industry to curb excessive charges for reference checks and tenancy agreements. Administrative fees for three people moving into a three bedroomed house in Cambridgeshire vary from £650 at some letting agents in Cambridge Peterborough and St Neots to just £225 at one agent in Fenland. Julian Huppert says with rising house prices and a shortage of affordable homes, more people are now being forced to rent. He joins me on the line now. Morning Julian.
JULIAN HUPPERT: Morning Dotty. How are you?
DOTTY MCLEOD: I’m fine thank you. How do you know that these fees are actually excessive.
JULIAN HUPPERT: Well I think you can just look at how much is being charged. I had a look around in Cambridge at some places charging £250 to change a name on a form, £16 for sending an email or a letter. It doesn’t cost that much for a stamp and an envelope and certainly £16 for an email is pretty steep. But also there’s been work done around the country. So Shelter did a survey, and found that one in seven people who use letting agents have to pay more than £500 just to get started. That’s an exorbitant amount of money for people who often are struggling to get the money together to pay for the deposit and the rent anyway.
DOTTY MCLEOD: And do you think that this is a problem in Cambridge specifically?
JULIAN HUPPERT: It’s particularly bad in places like Cambridge, because you might say there’s a free market. If people think they are paying too much they’ll just go somewhere else. But anybody who has tried to rent a property in Cambridge will know you simply don’t have the opportunity of saying oh no, I don’t like this agent, I won’t look at any of their properties. You have to act very very fast. You have to be open to it. So people don’t really have an opportunity to choose.
DOTTY MCLEOD: Well also on the line is David Cox who is the Managing Director of ARLA, the Association of Residential Lettings Agents. David, something like that, charging more than £100 to change the name on a form, that’s quite hard to defend, isn’t it?
DAVID COX: Good morning Dotty. I think it’s slightly more involved than just changing the name on a form.
DOTTY MCLEOD: Well explain what might be involved with something like that. Because maybe we don’t realise what the letting agents have to deal with.
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