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30% of landlords may stop using agents if fees go up - survey

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. 

  • Simon shinerock

    What people say and what they do a very different

  • SCN Lettings

    Agreed. Whilst there are landlords who can let and manage their own properties, there are are those that choose not to for reasons of time and / or the burden of compliance with increasing legislation. Not many working landlords want to spend the average 16 hours it takes for a let from start to finish. Plus the fact that many landlords do not want the 4am emergency call ( or the one on the beach !) saying there is a leak or other maintenance issue.

  • Mark Wilson

    I tend to agree Simon. Not sure about the rest of the country, but letting flats in central London isn't so easy these days and self managed property sound like a big headache to me!

  • jeremy clarke

    Short term maybe but once the deposit disputes kick in or tenants fail to move out....
    Approached by let only landlord last month asking if we would take over management of his flat where we put tenant in 9 years ago.he hadn't been in the flat all that time, the last has record was the one that we did when tenant moved in!

  • jeremy clarke

    Sorry should read gas record

  • Angus Shield

    "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)." - I love this piece of data from the survey!

    This reassures me (as an Agent) that Agents Fees are rightly justifiable when the surveyed Self-Managing Landlords also accept that time, process & effort has a quantum!

    If Agent fees are reasonable then what really is the issue?!

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