Labour to tackle rip-off letting and estate agents

Labour will tonight lead a debate and vote on amendments tabled to the Consumer Rights Bill in the House of Lords to protect consumers in the housing market. This is part of a long-running campaign by Labour to get a fairer deal for private renters, and consumers when buying or selling a home. There will be votes on amendments related to fees and client money protection and a debate on retaliatory eviction.

There is clear evidence that letting agents and estate agents are exploiting the pressures of England and Wales's frantic housing market to charge rip off fees to consumers. Labour wants to end the ability of agents to act for two parties in a deal at the same time, cutting out rip-off bills and helping to relieve this pressure on the cost of renting, owning or selling a home.

The amendments seek to:

• Ban letting agent fees charged to tenants.
• End the practice of double charging where an estate agent demands fees from both buyers and sellers of the same property.
• Introduce client money protection so tenants and landlords money will be protected if the letting agent goes bust or misappropriates their funds.
• Curb retaliatory eviction where private tenants are evicted for complaining about poor standards in their property.

Emma Reynolds MP, Labour's Shadow Housing Minister, said: "Too often consumers are being ripped off because they face sky-high fees or agents are failing to protect their money. Labour's measures will ban letting agent fees on tenants, provide protection for their money if an agent goes bust and end double charging on home buyers. We also want to see an end to retaliatory eviction - it's wrong that tenants are kicked-out of their home for complaining about poor standards in their home."

Stella Creasy MP, Labour's Shadow Consumer Affairs Minister, said: "Everyone has heard horror stories about buying or renting. All too often the common cause was a middle man, either letting or estate agents. Labour's amendment will stop them being able to double charge tenants, landlords, sellers or buyers and improve consumer protection."

"It's time the government stopped letting middlemen get away with these rip-off charges that can run into several thousands of pounds." Ms Creasy added.