A recent rise in the number of landlords using letting agents to help manage their property may not be sustainable, according to a new report.
Last week saw research from the National Landlords Association reveal that 61% of landlords currently use a letting agent – a 7% increase from the final quarter of 2016.
Abnormal
The increase was described as a break from the norm by the National Landlords Association, with the proportion of landlords using an agent remaining relatively consistent during the last few years.
In addition, the report found that the proportion of landlords self-managing their property has slipped by nearly 10% during the last year.
Richard Price, executive director of the UK Association of Letting Agents, believes that the fact more landlords are relying on letting agents is testament to the service that many provide in the sector.
Mr Price 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.’[1]
Rise in use of letting agents could be unsustainable
Changing Sector
However, recent changes in buy-to-let taxation, coupled with the proposed ban on charging fees to tenants, could mean a number of landlords will be searching for different ways to save money. This could see less landlords using services provided by agents.
Chief Executive of the National Landlords Association, Richard Lambert, observed: ‘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.’[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2017/6/rise-in-number-of-landlords-using-letting-agents-may-not-be-sustainable