Council claims its own letting agency’s fees undercut competitors

City of York Council claims that its own letting agency YorHome charges between 6-7% less than local agents in the region.

The council states that its YorHome’s letting fee of 9% for homes in York is the city’s lowest management fee with no extra charges. The local authority points to its own market research, carried out this summer, which it says shows it could save landlords between about £700-£1,930 a year in letting fees.

However, the council fails to provide transparent comparable figures relating to the fees charged by other agents in the area.

As part of promoting its own service, the council is also keen to point out that new landlords signing up with YorHome could also get free home improvements and 12 months rent up front, and all YorHome’s landlords get their fifth consecutive year fee-free.

The council says that YorHome’s single fee of 9% delivers landlords a fully managed, comprehensive letting service. This includes:

+ helping prepare the home to be rented

+ a deposit scheme and deposit registration fee

+ tenancy agreements and extensions

+ preparing an inventory and inspecting the property

+ paying for an Energy Performance Certificate (EPC).

The council claims that most other agents in the region charge additional fees for many of these extra services.

YorHome is looking for empty homes or homes with six months remaining on the lease in York, to support people in York facing homelessness or refugees, such as those from Ukraine.

Just as our research shows that our fees are among the city’s lowest, the council also support many of its tenants by keeping their rents affordable, and the local authority is happy to discuss rental levels with landlords, according to Cllr Michael Pavlovic, executive member for housing at City of York Council.

He said: “We give our landlords what we believe is the best return in the city. With our single management fee, we take care of everything while providing someone a much-needed home in York.”

 

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6 Comments

  1. jeremy1960

    Yet another council boasting about wasting council tax payers money.
    I’ve said it before, if you are not accountable to anyone, are using someone else’s money, don’t have the overheads that real businesses have and don’t have to make a profit, it’s easy!
    How many of these councils have ever made it work though? Most lose money, close down quietly and redeploy all the staff elsewhere without consequence.
    They are all a disgrace to those who work hard for a living. Our local council wasted £5.3 million with a failed property company!

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  2. NW.Landlord

    Agents (council included), like many other professions, those who make wild claims to be able to save you money are usually dreadful at doing the job. What could possibly go wrong….

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  3. CountryLass

    Of course they can do it much cheaper, the salaries, office buildings and running costs are all paid for by the Council, using funds from the taxes paid by the lettings agents they are trying to put out of work! I wonder what would happen if all of the letting agents in York demanded a 6-7% deduction in their business rates to account for being forced to fund a competitor?

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    1. singingagent

      Do Councils have to charge VAT? If not 9% would be 10.8% for a high street agent. The article states that they charge tenants a discounted rent. If it was 10% below open market value, then Landlords would be 4% worse off than if they appointed an agent at 15% commission.

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  4. jan-byers

    great to see the councils shafting local businees that pay rates

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  5. AcornsRNuts

    Give it another six months and there will be an article about YorHome going bust.

    No sensible landlord would trust a council to look after their property.

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