Back in the day, Liberal Democrat peer Olly Grender worked for Shelter. Her passion to help people with housing matters has never left her and she continues to campaign on a range of housing issues. The pressure that she put on the Government resulted in their decision to end lettings fees for tenants. We reported that this was going to happen last November but the Government launched its consultation on Friday.

Olly introduced a Private Members’s Bill in the Lords last year which would have outlawed these fees. Five days after the debate, the Government announced the measure. Olly explained why it was so important to protect tenants from these charges in her speech proposing her bill:

Shelter’s research shows that average letting fees are £355 per move, with one in seven people paying £500. On rare occasions, renters have been forced to pay fees of £900 or more to a letting agent, simply for the privilege of moving into a home. Reference checks, credit checks, administration fees, inventory fees—the list goes on. Invariably, the fees charged are extortionate compared to the cost actually incurred by the agent and they are not necessary. Furthermore, any cost actually incurred should be covered by the lettings agent’s client—the landlord—not by the tenant. Far too often these high up-front costs are proving a barrier to tenants, who simply cannot afford to move.

This week Radio 4 broadcast a documentary, presented by Sarah Montague, called “After Cathy”, 50 years on from Ken Loach’s “Cathy Come Home”. It featured the audio diaries of three homeless people over the course of a year. One of them, Zara—not her real name —from London, a teacher and mum of a three year-old and an 11 year-old, had lived in the same private rented home for six years when her landlord put up her rent. She could not afford to move to cheaper accommodation because she could not afford the up-front costs of moving. This teacher is now homeless and has been living in emergency accommodation with her children for a year—a teacher. Does anyone in this Chamber really believe that this teacher, who could not afford the up-front costs to move to cheaper accommodation, would have been helped by a nice clear and transparent breakdown of the additional costs of the credit check, the inventory check, the administration charge and the cleaning costs, on a nice large poster in the lettings agency’s office that complied fully with the Consumer Rights Act, with clear guidance about who she could complain to if the fees were not sufficiently transparent? Does anyone genuinely believe that at that critical moment when she could not afford the up-front costs to move somewhere cheaper, transparency would have made the difference? It would not.

In response to the consultation being launched on Friday, Olly said:

Too many renters are being ripped off by unfair letting fees and left behind by our broken housing market. A total ban on all tenant fees must be brought in as soon as possible, including renewal and exit fees, to avoid agents getting around the ban by the back door.

The only fair system is where landlords pay the fee, to stop agents double-charging.

The Government must not bow to pressure from letting agents who are lobbying hard to protect their profits. They have had time to improve voluntarily but they have failed to act. Unscrupulous letting agents must clean up or close down.

It’s important that the letting agents don’t win the day, here. You have until 2 June to respond to the consultation. I wouldn’t put it past the Government to renege on their plans, so let’s make sure that the balance of the argument in the consultation is against the unfair exploitation of vulnerable tenants.

* Caron Lindsay is Editor of Liberal Democrat Voice and blogs at Caron's Musings