PROSPECTIVE tenants wanting to rent a home in Gloucester and Hereford are being forced to pay £423 in questionable administration and reference fees before they can obtain the keys and move in.

The charges demanded by traditional estate agents have spiralled out of control, despite a promised crackdown, as more people rent, rather than buy.

A mystery shop of 284 agencies around the UK, carried out for Purplebricks, found the average fee for administration and referencing was £257 per tenant for a standard rental agreement for a property – with Gloucester and Hereford £166 more expensive than the average.

The research revealed some UK agents charge as much as 60 per cent of a month’s rent, which can send costs well over £1,000, depending on the property.

On top of an administration and reference charge, renters are often asked to pay a host of extra costs.

These can include, an inventory fee which can be as high as £340, ID checks which can add an extra £9, additional fees for a partner or fellow lodger of up to £125, moving in on a Saturday which can cost £130 or charges and/or deposits for keeping pets at the property.

In addition to these extra charges, some agencies ask tenants for non-refundable holding deposits to secure a property, adding to the financial burden of finding enough money upfront to rent.

Making small changes to existing contracts also mean more eye-watering charges.

One agent wanted £300 to extend the tenancy while another asked for £320 to print and post a contract if a tenant did not have an email address.

Michael Bruce, CEO, Purplebricks said: “We believe in a better deal for consumers.

“The fees currently charged by agencies lack transparency and tenants are faced with an array of extra charges they simply can’t avoid if they want to rent a particular flat or house.

“Some of these are outrageous and bear no relationship to the actual cost of drawing up a contract or making a credit check.

“Over a third of homes in England and Wales are now rented and while some see renting as a stop gap before buying a home, or enjoy the flexibility renting offers, some can’t afford to buy.

“At a time when it’s becoming more expensive than ever to rent, it’s outrageous that less scrupulous agents are profiteering from unfair fees charged to both tenants and landlords, they are getting two bites at the cherry.

“Tenants need to know what they will be charged, so they can properly budget.

“We are determined to transform estate agency and make renting, letting, selling or buying a home fair, affordable and transparent.”

When it comes to moving out of rented accommodation, handing over more cash to the agent is par for the course, with a final inventory check costing tenants up to £200, the study found.

Losing a key can bring a £60 bill and forgetting the end of the energy and phone contracts costs another £50.

Leaving a single cardboard box behind can result in a £30 ‘clean-up’ charge.

Wanting a reference for a new home from an agent is as much as £60, while paying by credit card can add another three per cent on the bill.

The biggest gripes faced by tenants airing their grievances in chatrooms included paying a £250 fee for failing to retrieve a sock from under a bed and paying £360 for a professional clean of a three-bed house.

The research comes as an online campaign has called on Housing and Planning Minister Gavin Barwell to take action on agency fees in England and Wales. In Scotland fees are regulated.

All agents are required to publish fees on websites following new regulations introduced a year ago; however the absence of industry-wide rules means agents in England and Wales feel they are free to charge whatever they want.

The final bill can then come as a nasty shock to tenants, often leaving the current 5.2 million private renters in the UK no choice but to pay up or risk losing a property.