New report calls on government to regulate all letting agents

Tenants are being ripped off by cowboy agents in the ‘exploding’ rental market, says a major new report out today.

It is urgently calling on the Government to regulate letting agents to the same standards as estate agents.

The Resolution Foundation, an independent think tank which focuses on lower income groups, says tenants are having to pay significant upfront costs, whilst agents’ fees are variable and there is a lack of transparency around charges.

The organisation carried out a mystery shopping exercise of 25 unnamed letting agents in three cities – London, Cheltenham and Manchester. It found the range and type of fees charged varied enormously.

For example, administrative fees ranged from £95 to £375. Total upfront costs (including deposit, admin fees and rent in advance) for a one-bed property in London were £2,166, around double those charged in Manchester (£1,028) and Gloucester (£1,094).

Just two of the letting agents displayed the costs of renting on their websites and many renters only discovered charges after they had decided to rent a property.

Average deposits for a one-bed property ranged from £487 in Manchester to £1,099 in London.

Many tenants reported difficulties when moving within the private rented sector as they had to hand over a new deposit before they had got their old one back.

Resolution says its findings are particularly relevant given the growing number of households forced into renting for the long term. In 1988 only 14% of low to middle income households aged under 35 were living in rented accommodation, but by 2008 it had tripled to 41%.

The report points out that unlike estate agents, letting agents are unregulated and under no compulsion to hold membership of an ombudsman service.

The Resolution Foundation is calling for:

•  Letting agents to be regulated to the same level as estate agents, so that unscrupulous agents can be banned;

•  All agents to be signed up to an ombudsman service giving redress to tenants;

•  The ombudsmen’s codes of practice to stipulate that agents must display all charges to tenants and landlords on their website and in adverts in a way that is easily comparable across agents;

•  The Government to consider ways to make it easier for tenants to transfer deposits between landlords when they re-tender for the tenancy deposit protection schemes in 2012.

Vidhya Alakeson, Resolution’s director of research, said: “The lack of regulation in the exploding private rented market is of growing concern.

“We need more transparency so tenants at least know what fees they’re facing and to help create a more competitive market. Given that an increasing number of families have no option other than to rent long term, we need to question why letting agents are not regulated to the same degree as estate agents.”

Christopher Hamer, The Property Ombudsman, said: “This report emphasises the growing importance of the lettings sector for people seeking a home to live in.

“The Government does not see regulation of the sector as a priority and I, therefore, welcome the recommendation of this report that all letting agents should be required to be registered with an ombudsman scheme so that, at least, landlords or tenants can gain redress where they have been disadvantaged by an agent.

“Providing clarity and transparency of fees is also very important. As more and more people become tenants or landlords, these measures would assist them in fully understanding the commitments they are taking on and enable them to challenge the agent if anything is unclear.”

Worst letting agents in Manchester, Didsbury and Stockport

Here are some more of Philip James claims "de-coded" for those of us that don't use estate agent double talk. You know like "handy for the airport" meaning " it's at the bottom of the runway - with 24 hour noise.


Laura Kilbride, 
" a combination of good customer service from us combined with the fear many tenants have of absent landlords. Tenants want to be sure when something goes wrong they’ll be looked after properly" -  Well if good customer service means having to sue them for your deposit back in the Court and being reported to the Police for complaining about it.
“And landlords choosing to have their properties managed by us are happier too –Who says so? Certainly, the landlord of the property I am suing over is hardly likely to be "whooping with delight" at the prospect of appearing in court, over something he has little or no knowledge about is he?


Stay safe out there - The sharks will bite you hard!!

philip james rentals.co.uk

How landlords rip off tenants: deposit scam that means one lost pan can cost a fortune

After years of leaky roofs, dodgy heating and other Rising Damp horror stories, students seemed to have stumbled into every available pitfall when moving into rented homes.

After years of leaky roofs, dodgy heating and other Rising Damp horror stories, students seemed to have stumbled into every available pitfall when moving into rented homes.

But yesterday the costly scandal of disappearing deposits, which sees hundreds of millions of deposit money disappearing each year into landlords' pockets - and reappearing (if at all) after months of delays and obfuscation - was laid bare.

A fifth of private tenants complain that all or part of their deposit has been unreasonably withheld, according to a report by the housing charity Shelter and Citizens Advice Bureaux.

The organisations said £800m of tenants' money was swilling around the system without stringent controls on how it was controlled. They have compiled a catalogue of abuse by landlords who have taken advantage of the relative powerlessness of tenants and refused to return deposits for spurious reasons.

Tenants are often unwilling to pursue cases through the courts because of the cost, the time it takes and the need for a landlord's reference to secure sought-after new properties.

Tenants, often among the less well paid and unable to get a foot on the property ladder, can be forced into crippling debt or in extreme cases forced to become homeless.

Students are among the worst hit, with 35,000 facing a summer cash crisis because of the difficulties of getting their deposits back from landlords, according to the study.

Verity Coyle of the National Union of Students said: "The arbitrary holding back of students' deposits are unfair, done with very little accountability and adds to the financial pressures students are under."

Among the cases charted in the study is a tenant who was charged £850 for "cleaning carpets and curtains and a missing saucepan". A Methodist minister who relocated with his wife and three young children was landed with a £1,346 bill that included £1,000 for cleaning and redecoration. The bill was eventually withdrawn but there was no evidence that cleaning or redecoration was needed or had happened.

Two students, aware of the problems of dodgy landlords took photographs when they moved in and arranged for the flat to be professionally cleaned before they left. Five months were needed to get their £700 deposit returned. Other stories have included a £55 bill for a broken plastic towel rail and a £250 deposit withheld because of a hole in the wall made by a drawing pin.

"Too many landlords treat rent deposits as their money, instead of money handed over to them in trust," David Harker, the chief executive of Citizens Advice, said. "Many do not even bother to give tenants a proper reason for failing to pay it back."

Beware Philip James

Someone who claims to be a "director" of the company has been in contact now, confirming they are sticking to the tiny clause in a contract. They claim they are waiting for the utility bills to be produced, according to the power and gas company - they have had these since the 3rd December and they show I am £24 in credit.

The "director" issues more threats should I produce my leaflets. This will not deter me. I will produce and distribute leaflets as I see fit. This company appears to thrive on intimidation and threats. They HAVE stolen my deposit in my opinion. I fully intend to show this to the court.

He wants me to complain to the industry bodies that he belongs to, rather than continue through the courts. It is my choice which route I take to obtain my deposit back - not theirs. Did you know that a deposit is YOURS!! It is not the property of the letting agent or the landlord, and there are specific laws relating to it's retention and return. They will have to explain to the Judge why they have chosen to ignore this.

It may take months for the Court to set a date for the hearing, so keep coming here for updates and advice.



There was an elderly lady  on rip off Britain recently, I think she was in her 90s and from Salford. She told how she had fought against the Germans and they had not broken her - but the company in the programme nearly had. Luckily for me, I didn't have to worry about the Germans or this particular company - However Philip James are trying to wear down my spirit with their threats and intimidation, They will not succeed!! Luckily for me I am not in my 90s and I will not be bullied.

They continually attempt to bully me into submitting to their way of doing things. They contacted the Police last week because I complained too often. The Police conceded it is a civil matter.

After Christmas I will be looking to recruit students in the Didsbury area to assist with distributing leaflets and lobbying their offices, this will be paid casual employment

Considering a rental from Philip James Lettings Didsbury?? BEWARE!!

You should always choose your letting agent with care. My experience with this company has been horrendous. Trying to extort money for "admin" (£150) this was to ring someone to clean a cupboard, although they haven't replied to my letter.

I have now had to issue a County Court summons to try and get my deposit back. They keep relying on tiny clauses in the contract to delay repaying me any money.

Their staff in Didsbury - namely Danielle Beswick and her angry sidekick Nadine Fortune appear to be in control of the illegal withholding of deposits.

The directors seem unwilling or unable to intervene.


This story will continue until we reach trial, or they repay my stolen money.

There is so much more and leaflets are being prepared with the full details. In the meantime, choose you rental with great care.

Students in Manchester are particularly vulnerable to poor practice. If you have had a similar experience with this firm please post comments or contact me.

Here is some advice from shelter:

What if there is a dispute about getting my deposit back?

Your landlord or agent is only entitled to keep all or part of your deposit if they can show that they have lost out financially because of your actions, for example, if you have caused damage to the property or you owe rent. Ask your landlord or agent for a breakdown of the specific costs that they are taking out of your deposit. Your landlord or agent cannot keep your deposit to cover putting right normal wear and tear. There are rules on what costs can be deducted from your deposit.
if you cannot agree, the dispute will usually go to the county court.