According to a recent survey of National Landlords Association members, there has been a significant rise in the number of landlords who are dropping their letting agents following a price hike for their services.
The proportion of private landlords shunning letting agents in favour of letting and managing their own properties increased to 43%, up from 36% in Q3.
The 7% quarter-on-quarter increase reflects growing dissatisfaction with the charges many letting agents are levying onto landlords following the ban on fees to tenants which came into force in June 2019.
The NLA Q4 2019 Landlords Panel Survey reported that a typical landlord spent around £3,221 last year on letting and management fees. This was up from £2,026 reported in Q4 2018 and represents a 59% increase over 12 months.
Richard Lambert, Chief Executive Officer of the NLA, commented: “The tenant fee ban was always going to lead to agents trying to charge landlords more in order to recoup costs and maintain their margins. The only question was how much of a hike landlords would be prepared to accept.
“Landlords are voting with their feet and opting to forego paying inflated fees for the services of letting agents. This goes to show that landlords will only pay what they believe the service is worth and no more. A good letting agent can provide a great deal of value to landlords who do not wish to manage their own properties, but this shows that it is not essential to an increasing number of landlords.
“Responsible landlords can, and do, self-manage, saving themselves thousands of pounds.”