New research has revealed that the majority of landlords in England and Wales who currently use a letting agent will continue to do so when letting fees are banned.
Data released by the UK Association of Letting Agents (UKALA) shows that 79% of landlords believe their current letting agent will increase fees as a result of the proposed ban.
Despite this, only 9% of landlords said that they would leave their agent should their premiums rise. However, many are planning on how best to mitigate costs as a result of the impending ban.
40% of landlords asked said that they would increase rents in order to cover costs, while 22% said they would look around for a better deal. 13% said they would negotiate or refuse to pay additional fees, while 9% said they would definitely pay.
7% said that they are presently unsure on what they plan to do.
These findings go against other recent results released by the UKALA, which showed that 47% of landlords would leave their agents should their profits fall as a result of tax changes coming into play next month.
Both lots of research were undertaken by UKALA, in conjunction with the National Landlords Association. They were complied to better understand the impact that Government decisions will have on the lettings sector.
Richard Price, executive director of UKALA, observed: ‘UKALA agents strive to provide a premium service which represents excellent value for money, but the ban on tenant fees could leave hundreds of professional businesses with no other option than to increase fees for their landlord clients.’
‘This research is reassuring for agents in some ways as it shows the majority of landlords will retain their services even if they have to pay more which is testament to the essential role that agents play,’ he added.
Continuing, Mr Price noted: ‘However, one in 10 landlords say they will turn their back on their agents if fees are passed on, and our previous research shows that a significant number will do the same if the impending tax changes take hold and erode their profits.’
‘It leaves a tricky path ahead to navigate for agents as they’ll need to balance out the need to cover their costs in the wake of a ban on tenant fees without alienating their primary customers and source of income,’ Price concluded.