Simon Bowkett, Labour’s candidate for the 2015 General Election in South Dorset, has called on Richard Drax MP to show whose side he is on at a crucial vote in Parliament on Tuesday (13th May)
Following Ed Miliband’s recent pledge to reform the rented housing market under a future Labour government, the party has called a vote in Parliament next week to introduce one of its pledges – a ban letting agents’ fees to tenants – by adding an amendment to the Consumer Rights Bill.
Figures obtained from the 2011 census showed that the number of households buying their home in Weymouth & Portland has fallen by over 21% since 2001, while the number renting privately has risen by 53%. One in five homes in the borough is now privately rented.
Simon Bowkett told us:
“Across South Dorset, private renters are telling me that they are being hit by the cost-of-living crisis and are paying unfair fees to letting agents. The next Labour government will pass legislation to ban letting agent fees for tenants and to introduce longer-term tenancies with predictable rents.
“This week, parliament has a precious opportunity to improve the lives of 8000 Dorset households right now.
“Richard Drax MP has already shown that he is not afraid of rebelling against his own government on some issues – he voted against powers for the public to recall MPs, against equal marriage and in favour of a snap referendum on Europe.
“This week he has an opportunity to vote on an issue that directly affects more than 8000 households in his constituency, and to protect these families from unfair letting agents’ fees, I sincerely urge Mr Drax to do the right thing, and to support Labour’s important amendment.”
Emma Reynolds MP, Labour’s Shadow Housing Minister, commenting ahead of Tuesday’s vote, said:
“‘Generation rent’ needs proper protection against being ripped off – Labour will vote this week to provide it by putting an amendment to the Consumer Rights Bill to ban letting agent fees to tenants. If Conservative MPs like Richard Drax, and their Lib Dem colleagues refuse to back Labour’s proposals they’ll have to explain why they won’t stand-up for the 8000 households in Dorset and the nine million people nationally that rent.”
More info:
Labour will seek to amend the Consumer Rights Bill when in is debated in the House of Commons at report stage next Tuesday 13th May by introducing an amendment to ban letting agent fees for tenants.
Details
Tenants are hit by huge upfront costs through unfair letting agent fees. A survey of letting agents found that 94% imposed additional charges on tenants on top of the deposit and rent in advance. Fees are extremely variable, but on average tenants are forced to pay £355 to their lettings agents every time they move house with some paying as much as £500. These costs are putting addition pressure on renters with 54% of people surveyed saying they faced financial difficulties covering fees.
Labour’s three key reforms to the private rented sector announced last week by Ed Miliband:
Ban letting agents’ fees for tenants:
Landlords would continue to pay charges just as people selling houses pay fees to estate agents. But letting agents would be banned from charging fees which can reach up to £500 to tenants.
This will save people entering into a new tenancy an average of £350.
Introduce long term three-year tenancies:
Tenancies would start with a 6 month probation period at the end of which the landlord would be able to terminate the contract if tenant failed the probation (e.g. if there are rent arrears or anti-social behaviour). After the 6 months, the tenancy would automatically run for a further 2.5 years
Tenants would be able to terminate contracts after the first 6 months with one month notice as they can now.
But landlords would be able to terminate contracts with 2 months’ notice if they can have good reason.
Predictable rents:
Landlords and tenants will set initial rents based on market value and conduct a rent review no more often than once a year.
Rents could still be reviewed upwards, downwards or stay the same, subject to market conditions.
But the legislation would place an upper ceiling on any rent increases to prevent excessive rises. This would be based on a benchmark such as average market rents or inflation.
