Is It Right That Students Be Charged Letting Administration Fees?

Although it is widely believed by some that students are incapable of managing their finances effectively, it is important to point out that students are under a lot of pressure to support themselves with the financial limitations that they have. Consequently, students will try to find the best deals they can in regards to available accommodation. With a new academic year on the horizon, many new and existing students begin their search for somewhere to live in preparation for the new term at University. As competition mounts for the last available accommodations, and as we enter the summer holidays, there is the potential for this to be a costly time of year. However, it is worth making sure that you understand exactly how money much you need to pay and where the best deals can be found so that you do not spend more than is necessary.

What exactly are admin fees?
Administrative charges or ‘admin fees’ are charged by letting agents, estate agents, insurers or other agencies as a means of covering the administrative costs incurred through the recording and storing of data pertaining to properties, tenants and landlords, arranging appointments and maintaining communication with the relevant persons. These fees however can often be highly excessive.

What’s the reason for me still being charged admin fees?
It was announced by the Chancellor of the Exchequer Phillip Hammond, in August 2016, that administration fees could be banned. While this was a potential cause for celebration amongst students as it could save them money when renting studios or shared houses, the ban was not made official.

What impact could this have for students?
This new legislation would have the ability to crackdown on hidden and excessive charges. As a result, the pressure on students to pay high costs for student accommodation could be reduced. Also, if a business is discovered to have been over-charging its client, penalty fees may be issued. Housing Minister Gavin Barwell stated: “We’re determined to make all types of housing more affordable and secure for ordinary working people.”

How costly are these fees?
The average admin fee can be expected to be £175 approximately. This amount can vary depending on the agent and the city. Some letting agents though are dramatically increasing their prices, and in certain parts of the country, students have been subject to prices of £500 or more.

Hidden Fees?
Data sourced from money.co.uk shows that the average price of hidden fees in cities around England is:
• Liverpool – £130/£140 or 6 weeks of household shopping,
• Manchester – £155/£165 or 7.1 weeks of household shopping,
• Birmingham – £160/£170 or 7.2 weeks of household shopping,
• London – £215/£225 or 9.7 weeks of household shopping,
• Bristol – £250/£260 or 11.1 weeks of household shopping.
* Household shopping based on £22.60 a week

What’s being done to tackle this?
These rising prices are becoming unbearable. 28 year-old Vicky who was charged £500 in admin fees started a petition that was signed by more than 250, 000 people, compelling Parliament to take action. Many other students have expressed the view that being asked to pay excessive fees makes saving difficult, and many students are suffering while they struggle to cover their basic needs.
Fee paying as normal
It has been predicted that this legislation’s final arrangements will resume into September. For students in the new academic year of 2017/18, this means that they will continue to pay administrative fees.

Are there any other options?
Fortunately, there are certain letting agents who will be offering no administrative fees for a limited amount of time. Unihousing is one of these agencies. Based in Selly Oak, Unihousing are a high-standard lettings agents that own all of their properties and provide the kind of attractive deal that really stands out as the student letting season draws to a close.

For accommodation-seeking students in the Birmingham area unable to find a letting agent that doesn’t insist on an administrative charge, paying admin fees will remain a reality.

High standard student lettings agency based in Selly Oak, Birmingham. Unihousing own many properties for let in and around the area of Selly Oak in Birmingham, which is the prime location for students attending the University of Birmingham. The properties are furnished and maintained to a high standard at reasonable rates.

Name: Unihousing.co,
Postal Address: 571 Bristol Rd, Birmingham, Selly Oak, B29 6AF
Unihousing office: Kate at 0121 471 1195
Press Contact: Jon or Judy at SeadOak on 01214595066 or unihousing@seadoak.com

This release was published on openPR.