Lettings agents 'charging unfair prices' ? buy to let mortgages

28 January 2009

Holders of buy to let mortgages in London and the south-east have been warned over lettings agents that charge unfair renewal fees.

The National Landlords Association (NLA) has noted that buy to let investors in the region are charged approximately 11 per cent for renewing properties on a let-only basis.

More than 70 per cent of landlords view this amount as unfair and disproportionate to the work that is actually undertaken by agents, the NLA stated.

"If letting agents don't stop charging these 'money for nothing' fees, landlords should avoid using their services. It is as simple as that," commented NLA vice chairman John Socha.

He questioned why landlords should pay renewal fees to agents just to keep the same tenants.

Meanwhile Keshav Thukaram, the managing director of online portal Smartlandlord.co.uk, has warned against imposing too much regulation on the buy to let sector, saying that it could lead to higher costs for landlords and tenants.