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One-third of landlords could drop letting agent once fees ban comes in

MY DEPOSITS

Nearly one-third of landlords who currently use a letting agent may stop doing so once the fees ban comes in.

The finding emerges in a new report from specialist lender Paragon, based on interviews with over 200 ‘experienced’ landlords.

It shows that 73% of such landlords currently use an agent, but that 30% of these will be discouraged from doing so if fees charged to landlords go up.

John Heron, Paragon managing director of mortgages, 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.

“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 is unsurprising to learn that a substantial number of landlords might consider altering their approach to letting out their properties in that circumstance.”

The report found that of the 27% of landlords who let directly, most (84%) do not charge any tenant fee.

The report also asked about rental deposits, which are set to be capped at six weeks of rent.

More than two out of three landlords (68%) said that up to two months’ rent was reasonable.

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Source:: One-third of landlords could drop letting agent once fees ban comes in