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Hackney Council in east London is investigating local letting agents and property managers to make sure they are displaying fees they charge in accordance with the law.

Some fees charged by letting agents and property managers – such as introductory fees and fees for arranging assured short-hold tenancies or for management fees – must all be displayed, both in agents’ premises and on websites.

Failure to display details of fees charged as required by law could lead to prosecution and a fine of up to £5,000.

Hackney Council says there are more than 270 lettings agents and property managers operating in the borough – and the displayed fees list must include
an adequate description of each fee and its purpose, details of whether the fee is payable for the accommodation or by each tenant, as well as the total amount of the fee inclusive of all taxes and the method of calculating the fee, if the fee cannot be determined in advance.

In England only, letting agents and property managers must also display a statement regarding whether the business is a member of a client money protection scheme – as well as a statement that they are a member of a redress scheme and the name of that scheme, where applicable.

Earlier in 2015, Hackney Council called on the government to make it compulsory for letting agents and property managers to explain their fees through the 10 Steps to better private renting campaign.

Hackney Council’s Cabinet Member for Housing, Councillor Philip Glanville, said:

“This is a welcome move from the government, which has now implemented our demand – and it is essential that letting agents and property managers in Hackney clearly display their fees in their premises and online.

“Letting agent fees are still too high – and it is all too often an area of complaint.

“But in the absence of legislation to reduce or remove fees, I would ask tenants to remind letting agents of their obligations to comply with the law – which we will not hesitate to enforce, where appropriate.”

Hackney Council is calling on tenants and prospective tenants to report any breaches of the law to its Trading Standards department – and is encouraging rental tenants in Hackney to sign up to the borough’s 10 Steps to better private renting petition, details of which are available at the council’s website.
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