Some 30 per cent of landlords may be discouraged from using a letting agent if landlord fees increase as a result of imminent legislation, a survey suggests.
The survey, by Paragon Mortgages, shows that 73 per cent of landlords currently use an agent or third party to let some or all of their properties.
Of those, 12 per cent said they would ‘definitely’ be discouraged from doing so if landlord fees were to increase as a result of a ban on tenant fees, with 18 per cent answering ‘probably’.
Around 46 per cent of landlords who use an agent or third party said they would not be discouraged from doing so.
The report also reveals that 27 per cent of landlords do not use an agent or third party to let any of their properties. Of those, more than eight out of 10 do not charge any tenant fees.
The most common fees charged by landlords when letting a property without the involvement of an agent or third party are: credit check (60 per cent of landlords), inventory (55 per cent), referencing (54 per cent) and tenancy agreement (42 per cent).
Asked what they believe is a reasonable cap on rental deposits, 68 per cent of landlords said up to two month’s rent was reasonable. Of those, almost half said two months, with just under a quarter indicating one month.
“An increase in landlord costs as a result of a ban on tenant fees would be the latest in a succession of challenges and it’s unsurprising to learn that a substantial number of landlords might consider altering their approach to letting out their properties in that circumstance” says a spokesman for Paragon Mortgages.