Letting fees ban could discourage landlords from using letting agents

Ryan Bembridge

November 29, 2017

The planned letting fees ban will discourage landlords from using letting agents if they are expected to pay more, Paragon’s Private Rented Sector Trends report has found.

In interviews with landlords nearly a third (30%) said it would go some way to putting them off letting agents if were forced to pay higher fees.

John Heron, managing director, mortgages, at Paragon, said: “In the midst of ongoing turbulence in the private rented sector, landlords have already had to navigate through challenging policy changes, and rethink their strategies accordingly.

Budget is an opportunity to address the lettings fee ban

“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.”

Currently nearly three quarters (73%) of landlords use an agent or third party to let some or all of their properties.

The government has made a commitment to banning the fees outright before the next election.

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