Hackney Digs renters target ‘greedy’ lettings agents

Protesters from Hackney Digs at a demonstration earlier this month. Photograph: Hackney Digs

Rental agents accused of levying “excessive” fees have been told to stop charging tenants altogether as campaigners targeted their offices to highlight a parliamentary bill that calls for the fees to be banned.

Members of Digs, a Hackney-based group campaigning on behalf of private renters, protested outside the Hackney branches of Foxtons, Felicity J Lord and Homefinders earlier this month, demanding an end to their “greedy exploitative practices”.

The action was part of a London-wide campaign, Letdown, that also calls for regulation of agents, longer secure tenancies, an end to discrimination against those on housing benefit and rent rate controls.

Supporters of the campaign and the bill, which is modeled on Scottish legislation, would like to see agent-fees paid by the landlord.

Heather Kennedy, a member of Digs, said: “People aren’t stupid – they know when they’re being ripped off, exploited and discriminated against. The problem is that, until now, we have suffered alone and in silence, but the tide is turning.”

Ms Kennedy said that most agents charge private renters between £100 and £500 for standard services such as reference checks, making an inventory and admin fees and huge deposits on top.

She said: “Fees are rarely transparent and often tenants don’t find about them until after they have viewed a property and agreed to move in.”

Inflation-busting rent increases are only adding to the pressure on tenants, she said.

Rents in Hackney increased by almost nine per cent per cent in 2012 while a family hoping to rent a two-bedroom home would need to earn more than £60,000 between them, according to housing charity Shelter.

John Healey, MP for South Yorkshire, introduced a private members bill this month that proposes a compulsory licensing scheme for rental agents, a ban on letting and management fees and to allow local authorities to set-up their own letting agents. It will receive its second reading in October.

Healey said: “Letting agent fees have spiralled out of control. At a time when living standards are falling, renters are paying £100s in fees just to get a roof over their head.

“The truth is that the Wild West market of letting agents needs radical reform. The current system entrenches rip-off fees, shoddy standards and a worrying lack of accountability that affects everyone, including landlords.”

However, a spokesperson for Felicity J Lord said the fees were justified.

She said: “Our fees are extremely competitive and provide exceptionally good value, given that we provide a dedicated specialist administrator in every branch, offering a first-class service to both our tenants and landlords. Many other agencies don’t offer this level of support.”

Homefinders and Foxtons chose not to respond to the accusations.