Property Partner’s new fee structure knocks prices by 5.8% as resales soar

Since announcing its new CEO and fee structure in mid-July, Property Partner has seen trading on its resale platform soar 90% from the average of the previous six months.

Despite the resale market being closed for nearly a week, in July a record £1.56m worth of property equity was traded, compared to £0.6m the previous month.

Since 18 July, when the resale market reopened, average share prices have fallen by 5.8%.

In a market update last week Property Partner pointed to the fact that falling prices have led to higher dividend yields on those properties, listing the highest yields now available as a result of the price drops.

On 15 July Property Partner introduced several new fees, most crucially including an assets under management (AUM) fee of up to 1.2% per annum on portfolios valued up to £25,000.

Read more:What new Property Partner fees mean for investors?

As well as an increase in resale volumes, Property Partner has also been hit with dozens of 1* reviews on popular reviews platform TrustPilot and a barrage of angry messages on social media.

On TrustPilot the company’s 5* rating has dragged down to 3*.

Property Partner declined to offer additional comment.