An agent should not be charging you an additional fee for photos. As an agent myself the cost is usually around £40 so £149 is ridiculous. I'd be surprised if they would agree to 1.2% including VAT.
If they don't then I'll either do nothing, and stay put, or take a punt on an online agent. The fee they charge to quickly sell a small flat to a BTL landlord is ludicrous.
What are people paying agents at the moment? I just had 1.25% plus VAT, along with a £149 charge for professional photos.
I'm thinking of saying that I want 1.2% including VAT and photos. Seems reasonable?