‘Unjustified’ fees for tenants face probe

THe government is to investigate concerns over letting agents who charge “extortionate and unjustified” upfront fees to private tenants.

The law already prohibits charges for drawing up a tenancy agreement. It is also an offence to charge any “premium” as a condition of continuing a tenancy.

However, the Scottish Government has launched a consultation to define exactly what an illegal premium is.

An investigation by housing charity Shelter Scotland last year found that nine out of ten letting agents demand high fees from tenants for “services” on top of the rent and deposit.

Housing minister Keith Brown said: “Concern exists in relation to the legality of pre-tenancy charges made by some agents and we are determined to end this practice.”