NLA hits out at agent renewal fees - buy to let mortgages

01 May 2009

Greater protection is needed for landlords to prevent them being hit with "unfair" renewal fees by lettings agents, an industry body has argued.

The National Landlords Association (NLA) noted that holders of buy to let mortgages in London and the south-east may be charged around 11 per cent of annual rental income if a tenancy is extended.

This is "unwarranted", the organisation claimed, adding that the costs to property investors could reach thousands of pounds.

Vice chairman John Socha commented that the charges represent "money for nothing" and urged landlords to check contracts with agents before they sign anything.

"There is absolutely no reason for a significant renewal fee that doesn't reflect the work undertaken," he remarked.

Meanwhile, chairman of iammoving.com Simon Preston has said that buying a property in the next 12 months could help investors to make "reasonable" capital gains - but added that prices may begin rising if they wait longer than a year.

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