NLA calls for fees to be scrapped

The National Landlords Association (NLA) wants tenancy renewal fees to be scrapped in some cases.

According to the organisation, the fee is "unfair" if the landlord who is paying it has managed the property throughout the agreement.

Currently, landlords are required to pay a fee of around ten per cent of the annual rent asd a renewal commission.

This money goes to the letting agent but the NLA said that there is no justification for the fee.

"It is totally unacceptable where a letting agent is purely renewing the contract for the next 12 months for the same tenants, that the landlord should pay a ten or 11 per cent commission," said NLA vice chairman John Socha.

"All landlords expect to pay a commission at the beginning of a tenancy, but with rents in London and the south-east topping the tables, another fee of this size is simply unfair.

"There is no good reason for a significant renewal fee that doesn't reflect the work undertaken by the letting agents in London and the surrounding towns and cities," he added.

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