Peers in the House of Lords have voted on Labour’s proposals to ban “sale by tender” transactions, and to ban letting agents from charging tenants fees. The former was rejected, with a vote of 113 in favour and 156 against. The latter was also rejected, with a vote of 123 in favour and 168 against.
Although disappointed by the result, shadow housing minister Emma Reynolds maintains that the “next Labour Government will ban letting agent fees on tenants, end the practice of double charging and improve consumer protection.”
However, one amendment has been proposed that the industry is largely in favour of. In an unexpected move, the Government chose to amend the Bill to require letting agents to display whether they offer client money protection (CMP).
SAFEagent, who have been calling for the mandatory requirement of all letting agents to offer CMP, are very pleased by the move. Chair of the SAFEagent steering group, John Midgley, said, “We are delighted that the Government has made this common sense move and listened to our concerns on the need for financial protection for landlords and tenants.”
They are urging all peers to back the amendment when it is debated next week.