Insurance News Archive
Buy to let insurance holders warned about lack of clarity in professional fees
Posted by Dan Winters.
Buy to let property insurance policyholders are being warned to be aware of the lack of transparency in relation to professional fees in the sector.
Following a consultation, the Royal Institution of Chartered Surveyors (Rics) has found that there are large inconsistencies in the level of commissions and fees related to the residential and commercial sectors.
Issues raised by property insurance policyholders, professionals in the industry, regulators and the press were addressed in the report which is due to be released in full today (February 24th).
These included service charges in leasehold property, commission on letting renewals, commission on home information packs (Hip) and energy performance certificates and the breakdown of valuation fees.
Rics is now calling on the government to introduce regulation in the sector.
Max Crofts, Rics president and chairman of the Transparency Working Group, said: "We need to put a stop to the unwelcome practices and enhance regulation and its coverage across the sector ... The industry will do what it can but... action and legislation is needed from government."
Earlier this week, it was suggested that buy to let property insurance policyholders may start to cut out estate agents following a report by the Office of Fair Trading which suggested a shake-up of the market.
24 Feb 2010
