Letting agents charging rip-off fees
It is estimated that around 8.5 million tenants in the UK who are frozen out of the mortgage market an cannot buy their own property.
The knock-on effect is a red-hot rental market, with fierce competition for accommodation in many areas, enabling letting agents and landlords to increase fees and rents.
While many agency fees are necessary to cover the cost of administrative tasks such as reference and credit checks, one expert claims these should not cost several hundred pounds.
Matthew Pennycook, senior analyst and researcher at think tank Resolution, said some agencies are charging fees that are “completely disproportionate to the level of service received”.
“A full credit check can be done online for less than £20 and all agents have a standard contract that can be edited and printed,” he added.