Why Estate Agents’ Extra Fees Are Driving Landlords Out – How We Do Things Differently

Landlords have never been under more pressure, but estate agents are not helping

Over the last decade, we have not seen such intense pressure on the Private Rental Sector (PRS). Successive Governments have failed to recognise the importance of landlords and the essential role they play in the London property market – especially in Clapham and Battersea.

The costs and legislation coming from all directions are unsustainable. Licensing, safety checks, the Renters Rights Bill, rising costs of works, outrageous estate agent fees on top of fees, and even double council tax (watch out, Angela). Now we face the threat of further punitive taxation from our excellent Chancellor.

Note to the Chancellor – a policy of taxing and spending has historically proven unsuccessful; promoting growth and investment is the only way forward.

All this results in landlords either leaving the sector or passing costs onto tenants. This is not a sustainable model.

Why are estate agents managing properties charging fees on fees?

Why do estate agents charge a property management fee yet add further charges to every aspect of their work?

• 90% of all agents charge an extra percentage or costs on any maintenance work carried out on the property.
• A well-known agent — recognisable by the branded Minis they drive — charges landlords an astonishing 25% on all work. To put this into context: if a landlord spends £20,000 on a refurbishment, the agent takes £5,000 just for “managing” the process.
• One of the largest corporates in London classifies major repairs and refurbishments as being any works over £350 and charges 10% on these works. They then charge 20% on works over £2,500.

How can these additional charges be justified, and why do landlords accept them?

The problem with percentage-based fees

The issue with percentage-based charges is simple: the bigger the project, the more the agent earns. But does the amount of work truly increase with the project’s cost? In most cases, no.

A £10,000 roof replacement doesn’t require five times more effort to oversee than a £2,000 kitchen update — yet landlords are charged as if it does. This system rewards inflated costs rather than delivering value.

I would also like to ask: who oversees these projects?

In most cases, it’s just a property manager taking a few photos. How many property managers understand the difference between concrete and slate tiles, soffits, valleys, lintels, DPC, etc

At Noble Estates, we are highly experienced in development and project management. Our expertise ensures landlords receive proper advice and oversight – not just photos.

The Noble Estates approach – transparent, fair, sensible

The pressure on landlords and tenants is reaching a crisis point. Landlords are leaving the industry, decreasing available rental stock and driving up rents.

As an independent boutique agency with nearly 100 years of combined experience in Clapham and Battersea, we have decided to buck the trend.

• We have never added an extra % for general works, nor ever will.  That’s why you pay us a management fee.
• We have increased our major works fee from £1,500 to £5,000 and charge 10% + VAT — clear, simple, and capped.
• We have gone a step further and won’t charge for inspections, visits, spare statements, or court attendance

We believe agents need to do their part in these challenging times.

Why landlords choose Noble Estates

Our goal is simple:

• Offer tremendous value
• Stringently manage costs
• Deliver real expertise.

At Noble Estates, we believe it’s a team game.