MPs call for tougher rules on letting agents Clive Betts, chairman of the Communities and Local Government Committee, said: "Amazingly letting agents are subject to less control than estate agents. This lack of regulation is giving rise to sharp practice and abuse by some letting agents. We were told that the letting sector was the property industry's 'Wild West'. 'Cowboy' agents who rip off landlords and tenants have to be stopped. Charity Shelter recently said agents across Britain were "out of control" and forcing millions into debt. The charity found that tenants were being charged £350 in fees on average to set up a tenancy, on top of deposits and upfront rent. These costs were in spite of agents often receiving separate fees from landlords to set up a new tenancy on their behalf. Shelter's chief executive Campbell Robb said: "When so many families are stuck in expensive, poor quality, insecure homes we can't afford to wait. The government must ensure the Committee's key recommendations are brought in within this parliament to give England's renters a better deal. The committee found that while the private rental sector has boomed over the past decade, the market is still "relatively immature" and does not always suit households' needs. Government figures released earlier this year showed that more households are renting their homes privately in England than living in social housing for the first time since the 1960s. The MPs said that as the sector becomes home to an increasing number of families, households should have the choice of receiving longer tenancies, giving them greater certainty. Mr Betts continued: "Letting agents should not be chasing renewal fees. Instead they should be working to ensure the length of tenancies meets the needs of both tenants and landlords. The OFT recently analysed 4,000 complaints made by tenants and landlords to Consumer Direct about the lettings market and found that nearly a third were about fees and charges. Landlords and tenants were being "drip-fed" extra charges when they have already signed a contract, making it harder for them to switch to another agent without racking up extra costs, the OFT found. Which? executive director, Richard Lloyd, said the consumer body had uncovered "wide scale poor practice" in the market. He said: "We hope the Government puts these plans into action as soon as possible. We also want the Office of Fair Trading to crackdown on hidden charges so that people know what they are signing up to and can more easily shop around. Ian Potter, managing director of the Association of Residential Lettings Agents (Arla), welcomed the report, saying it is "more important than ever" that landlords and tenants fully understand their rights. He said the sector needs "meaningful regulation" as soon as possible and Arla has always advised its members to be clear and upfront about the fees they charge. Housing Minister Mark Prisk said the government wanted to give tenants more choice but warned against "excessive regulation on the sector." "The Committee's report offers a useful contribution to this important issue," he said. We're determined to build a bigger and better Private Rented Sector that gives tenants more choice but we should avoid excessive regulation on the sector which would push up rents and reduce choice for tenants.