1 May

NLA attacks renewal fee arrangements

NLA attacks renewal fee arrangements

Landlords who have managed properties themselves during the course of a tenancy should not be charged a fee for its renewal by lettings agents, the National Landlords Association (NLA) has argued.

The industry body noted that in the south-east this figure can be as much as 11 per cent of the annual rent, which can be worth thousands of pounds.

NLA vice chairman John Socha said he hoped a "landmark" challenge in the high court this week against the right of agents to impose such charges will be successful.

He commented: "There is absolutely no reason for a significant renewal fee that doesn't reflect the work undertaken. These charges really are 'money for nothing.'"

News of the legal move comes at a time when many investors are looking to increase their holdings.

The Young Index survey for the first quarter of 2009 revealed that 40 per cent of investors are planning to buy in London within 12 months and 24 per cent were keen to do so outside the capital.

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