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Labour to call Commons vote on letting agent fee ban Labour to call Commons vote on letting agent fee ban
(35 minutes later)
Labour are to call a vote in the Commons in an attempt to ban letting agents charging fees to tenants. Labour are to call a vote in the Commons in an attempt to ban letting agents from charging fees to tenants.
Party leader Ed Miliband said people who buy a house are not charged fees by agents, but people who rent are.Party leader Ed Miliband said people who buy a house are not charged fees by agents, but people who rent are.
He said Labour was "determined to stand up for generation rent" and deliver an "immediate financial benefit" to people who do rent.He said Labour was "determined to stand up for generation rent" and deliver an "immediate financial benefit" to people who do rent.
Labour will table the proposal as an amendment to the Consumer Rights Bill in the Commons on Tuesday. The Association of Residential Letting Agents said it was "deeply concerned" by Labour's proposals.
Earlier this month Mr Miliband, while unveiling Labour's new slogan "Hardworking Britain better off", outlined his party's plans to fight for a "fairer deal" for tenants who rent. Labour will table its proposal as an amendment to the Consumer Rights Bill in the Commons on Tuesday.
He said his party wanted to see a cap on rent increases in the private sector as well as scrapping agent fees. Mr Miliband said: "If the Conservatives and Liberal Democrats support us on Tuesday we can make this happen now. That could be implemented straight away."
During exchanges at Prime Minister's Questions on Wednesday, David Cameron indicated that he would be prepared to work with Labour on proposals for longer term tenancy agreements, although he rejected blanket rent controls.
Mr Miliband said: "David Cameron seemed to be warming to Labour's policy on rents. Now he has a chance to actually vote for it."
'Adverse affect'
Earlier this month the Labour leader, while unveiling his party's new slogan "Hardworking Britain better off", outlined further his party's plans to fight for a "fairer deal" for tenants who rent.
He said Labour wanted to see a cap on rent increases in the private sector as well as scrapping agent fees.
But Ian Potter, managing director of the Association of Residential Letting Agents, said Labour's plans could have an "adverse affect on tenants".
He said: "The challenge we have today is an unregulated market and a worrying lack of supply.
"Pledging to transfer fees to landlords or calling for outright bans will increase rents as landlords and agents seek to achieve returns. Fees are not arbitrary or unnecessary; they represent a business cost that Labour has failed to recognise."
Following Tuesday's vote, the Consumer Rights Bill will still need to go through a third reading in the Commons, after which it will be considered by the House of Lords before being enacted as law.Following Tuesday's vote, the Consumer Rights Bill will still need to go through a third reading in the Commons, after which it will be considered by the House of Lords before being enacted as law.