Landlords stand by their agents ahead of letting fee ban
A recent survey carried out on landlords found that 71% will continue to use a letting agent if a ban on tenant fees is introduced.
According to UKALA, 79% of landlords believe their letting agent will increase their fees if the ban is applied however only 9% said they would leave their agent if their premiums did rise.
UKALA have criticised the ban arguing that affordability in the private rental sector will not improve by preventing letting agents charging for their services as the costs will inevitably be passed back onto the tenants in the long run.
Executive Director of UKALA, Richard Price, said: “UKALA agents strive to provide a premium service which represents excellent value for money, but the ban on tenant fees could leave hundreds of professional businesses with no other option than to increase fees for their landlord clients.
This research is reassuring for agents in some ways as it shows the majority of landlords will retain their services even if they have to pay more – which is testament to the essential role that agents play. However, one in ten landlords say they will turn their back on their agents if fees are passed on, and our previous research shows that a significant number will do the same if the impending tax changes take hold and erode their profits”.
Price further added that a ban on fees will leave a ‘tricky path ahead for agents’ as they will need to find a balance between the need to cover costs without losing customers and further sources of income.
Full article available on Property Reporter: http://www.propertyreporter.co.uk/landlords/landlords-to-stand-by-agents-in-wake-of-tenant-fees-ban.html