An insurer is launching a new referral scheme for letting agents to market to landlords and tenants as a way of making up lost income once the tenants’ fees ban takes effect.
A bill to introduce the ban is currently going through Parliament and is scheduled to become law next year although the government is non-committal about a specific date.
Now Saffron Insurance Services says its new product, called Pefect For Lettings, “has been designed for the residential buy-to-let sector to enhance the service offering of letting agents and provide market specific insurance solutions to landlords and tenants.”
Saffron claims that with fees accounting for 20 per cent of an agency’s income, there is a gap to be plugged.
“Tenants and landlords need insurance, so becoming a scheme partner could replace all or at least some of that valuable income. It is simple, introducers refer clients to us, and we will do everything else” claims the company.
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And of course, Agents will be declaring any potential commission earned from a successful introduction to the Tenants and Landlords before they commit to such a purchase?
If the tenant or landlord requested details of this they would have to under FCA rules, however, there is no duty to declare this at the beginning ? many firms work with partners to provide introduction services for a lot more than insurance - is that an issue ?
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