Almost half of private renters faced rule-breaking letting agents

Millions of private tenants across the UK are regularly subjected to unfair or illegal behavior by letting agents, a new report from Citizens Advice has warned.

A new report from the national charity reveals a “rock-bottom” culture among these agents who manage private tenancies on behalf of landlords that threatens to undermine Labour’s ground-breaking rental reforms.

Researchers say this has affected almost half (48 percent) of all renters in the past three years; This corresponds to four million people.

The research shows that during this time period, more than two-thirds (68 per cent) of tenants with urgent repair issues such as a gas leak, unsafe wiring or a broken front door were kept waiting for more than 24 hours by letting agents. 29 percent stated that these repairs remained completely unresolved.

More than half (55 per cent) reported waiting more than two weeks for all or part of their deposit to be refunded, even though landlords are legally required to do so within 10 days of accepting the amount.

Citizens Advice warns that ongoing malpractice is also damaging tenants’ finances and health. The research found that more than a quarter (27 per cent) of people requiring urgent repairs faced higher bills as a result, while 43 per cent reported their mental health was negatively affected while trying to fix these problems.

The investigation also uncovered illegal practices and hidden fees. Under the Tenant Fees Act, ingress and egress charges are strictly illegal, but tenants continue to report being forced to pay these charges.

Meanwhile, more than half (55 per cent) of tenants using ‘zero deposit’ schemes, which waive upfront cash deposits but often impose high non-refundable fees, were incorrectly told the scheme was a mandatory condition of securing their tenancy.

The findings come as cost-of-living pressures continue to rise in the UK. Latest research by the New Economics Foundation (NEF) has found that rent costs in every region across the UK are seeing above-inflation increases of between 6 and 9 per cent each year.

According to Citizens Advice data, 29 per cent of all private tenants have had to cut back on essentials such as food and heating to afford the rent; this figure rises to 38 percent for single parents.

This means that around a third of 3.5 million people, including half a million families with children, had to borrow or take out a loan to cover housing costs last year.

In May, Labour’s flagship Tenant Bill of Rights came into force, banning section 21 ‘no fault eviction notices’ and rallying more tenants against poor conditions and unfair rent increases.

But Citizens Advice, which supports more than 2.7 million people in England and Wales each year, says the practices of fraudulent letting agents risk “undermining” the law.

The charity is calling for an overhaul of the way the system is regulated, with tougher sanctions and direct penalties for agents who break the rules.

Tom MacInnes, policy director at Citizens Advice, said: “Private tenants are paying more than ever to keep a roof over their heads and in return they are receiving a very poor service from letting agents.

“No one should be left to live in dangerous conditions for days on end, have to struggle for money they owe or be charged illegal fees. However, our advisors regularly assist tenants with such issues.

“The new Tenants’ Rights Bill is a pivotal moment for private tenants, a reform that Citizens Advice has long campaigned for. But this landmark legislation will only unlock its true potential if the government holds agencies to account through better regulation and tighter enforcement of existing rules.”

The government was contacted for comment.