A London council has launched a letting agency for private renters, in a move it said would protect tenants from “the scourge of rip-off fees and charges”. Haringey council in north London said its online agency, Move 51⁰ North, was the first in the UK to offer private tenants an alternative to mainstream letting agents. Research by Citizens Advice last year found that tenants were paying an average of £337 in charges, but that they varied hugely from agent to agent. Costs for checking references ranged from £6 to £300, while renters also facedcharges of between £15 and £300 for simply renewing their tenancies. Haringey council’s agency will charge tenants a fee of £180 to cover administration and £72 for credit checks. There are no renewal fees if they continue their tenancy beyond the original contract period. Landlords will be offered lettings and management services at the market rate, and access to the council’s maintenance services for repairs. None have yet signed up. The council will spend around £500,000 in the first three years to cover costs, but expects to return this by the fifth year. Around a third of the homes in the borough are rented privately, with average rents of around £1,600 a month for a two-bedroom property, although prices vary between neighbourhoods. Alan Strickland, Haringey’s cabinet member for housing and regeneration, said the agencies would “help stamp out rip-off fees and charges”. Strickland said: “Private tenants in London are too often forgotten in the noisy debate about the housing market in our city. “Haringey is fast becoming one of London’s most popular places to live and work, and we know many people prefer the flexibility of the private rented sector – which is why it’s vital we do more to protect them from rogue landlords and unscrupulous lettings firms.” Dan Wilson Craw from the Generation Rent campaign group said: “The average household in London pays more than £400 in agent fees when they move home, so some disruption to the market is welcome. “We hope the council will use this as an opportunity to lead the way in providing secure tenancies with predictable rents, but for the time being not all tenants will benefit. We need much wider reform to give renters greater power in the market.”
Move 51⁰ North has become the first London council-backed online lettings agency to offer private tenants an alternative to mainstream lettings agencies. Haringey Council in north UK will charge private renters a fee of £180 to cover administrative costs and £ 72 for credit checks, with no requirement for renewal fees for continuing beyond the original contract period. Landlords will be offered property management services at the market rate and given permission to use the council’s maintenance services for repairs. Generation Rent estimates spending £ 72 in 2021 , with a return on investment expected by 2021 . Dan Wilson Craw , policy and communications manager for Generation Rent , stated that the move is welcome and encouraged the consideration of much wider reforms to give renters even greater power in the market.