A new research has shown that 30 per cent of landlords in the UK may be discouraged from letting property via an agent or third party if the landlord fees were to increase because of a ban on the tenant fees.
According to latest Private Rented Sector (PRS) Trends report from Paragon, a leading provider of buy-to-let mortgages for landlords with property portfolios, 73 per cent of landlords the surveyed currently used an agent or third party to let some or all their properties. Of those, 12 per cent said that they would ‘definitely’ be discouraged from doing so if landlord fees were to increase because of a ban on tenant fees, with 18 per cent answering ‘probably’.
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), with 33 per cent of landlords charging for other, unspecified fees.
Asked what they believe is a reasonable cap on rental deposits, 68 per cent of landlords said up to two months’ rent was reasonable. Of those, almost half (46 per cent) said two months, with 22 per cent indicating one month.
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.