More Landlords Preferring Letting Agencies
In just under six months, more UK landlords are opting to contract Letting Agencies to manage their properties.
An association claims that from its latest survey of property investors, 61% of the landlords are using Letting Agencies to look after their properties which is 7% higher than the end of 2016.
The association is very surprised at the rise as over the past few years the proportion of landlords has remained relatively stable with just a 1% rise of those deciding to use Letting Agencies during 2014 to 2016 – 53% to 54%.
The report also shows that numbers of landlords who look after all aspects of their property management and tenant affairs, has significantly dropped over the last twelve months by almost a tenth- 46% to 39%.
The North East is the highest region in England where landlords use letting agents whereas the North West’s landlords are the lowest at 56%.
Across outer London, the South West and Wales there have been major increases of landlords taking agents on board.
With the recent announcements and plans for implementing a letting agents’ ban of charging tenant fees and with the tax changes to the private rented sector, the current thinking is that in the next twelve months there could be a large drop in landlords using agents.
The spokesman for the association said: “As landlords plan ahead to compensate for the tax changes over the next few years we would expect to see the number who use an agent to slowly fall away, and for more to start considering whether they are able to manage their properties themselves.”
He added: “However, this sudden spike, which is completely out of step with recent trends, completely turns this theory on its head. The big question is whether or not it’s a blip or if it will continue to rise.”
The executive director of a letting agent’s association believes that the levels of service and duties offered to landlords by agents are highly professional.
He said: “It is an uncertain time for anyone who owns a buy to let property, so the steady hand of a reputable agent is exactly what many landlords are looking for right now.”