I learn with curiosity the article printed on 3 July titled “On-line company requires ban on ‘unfair’ letting agent charges“, during which Whats up Neighbour urges the federal government to ban extreme landlord fees and restrictive company contracts. It’s a daring proposal, and whereas I welcome any debate on requirements and transparency in our sector, I feel it is very important put some context round what letting agent charges truly are, and what landlords are paying for.
In contrast to tenant charges, which have been rightly banned in most situations, landlord charges will not be imposed. They’re business phrases agreed between a shopper and a service supplier. A landlord chooses their agent, their stage of service, and the related value. If they don’t seem to be proud of the worth they’re receiving, they’ve the choice to stroll away. Suggesting that landlord charges are essentially exploitative misses the purpose that landlords are energetic decision-makers on this course of.
Whats up Neighbour describes lengthy discover intervals and cancellation charges as stifling competitors. I’d argue that competitors is precisely what defines our market. Companies of all sizes and shapes exist—on-line, hybrid, native, nationwide—and landlords can choose the mannequin that fits them. That isn’t a failure of competitors. That’s competitors in motion.
The truth is, if something, we’re already in a race to the underside with regards to letting charges. Some brokers are reducing prices so drastically to win enterprise that service, compliance and accountability are throwing in the towel. And but the chance we stock as brokers solely will increase—authorized compliance, deposit safety, licensing, ongoing tenancy administration, disputes, arrears, evictions. These will not be small obligations. Letting brokers tackle actual legal responsibility, and too typically we aren’t charging in step with that actuality.
I imagine brokers ought to cost what they’re value. Our charges should mirror not simply the duties we carry out, however the danger we mitigate for landlords and the peace of thoughts we offer. Low-cost charges typically imply corner-cutting, and in a sector as complicated and controlled as this one, that may come at a excessive value.
Our charges will not be plucked from the air. They mirror the price of working a compliant, skilled, well-staffed operation. This contains certified personnel, workplace house, shopper cash safety, indemnity insurance coverage, know-how platforms, and day-to-day administration of tenants, laws, disputes and upkeep. Lettings is just not a passive activity. It requires time, experience and a transparent understanding of over 170 items of laws. In lots of instances, letting brokers are extra accustomed to housing regulation than generalist solicitors.
I respect Whats up Neighbour’s enterprise mannequin and there’s undoubtedly a spot out there for tech-led, streamlined options. However let’s be clear—this isn’t a like-for-like comparability. A web-based-only platform with no native presence and no in-person property visits is just not delivering the identical service as a full administration agent. Each can supply worth in numerous methods, however they don’t seem to be interchangeable.
We’re competitors, not enemies. The 2 fashions can co-exist. However attempting to place one because the ethical selection and the opposite as the issue is neither honest nor correct. Landlords deserve selection. Let’s respect that.
I absolutely help the decision for equity, clear contracts, and clear phrases. If cancellation clauses are being abused, let’s name that out and repair it. However let’s not throw the whole company mannequin below the bus within the course of. There are millions of brokers throughout the UK delivering wonderful service, safeguarding tenants and defending landlords. Our function deserves correct recognition, not generalised criticism.
Let’s have the dialog—however let’s have all of it.
Sophie Lang is the director of Lang Llewellyn & Co.
On-line company requires ban on ‘unfair’ letting agent charges
