Growing Numbers Of Landlords Drop Letting Agents

AFS Team·5 March 2020·4 min read
Growing Numbers Of Landlords Drop Letting Agents

Growing Numbers Of Landlords Drop Letting Agents

Growing numbers of BTL landlords are choosing to drop their letting agent to manage or find properties for themselves, research reveals.

According to the National Landlords' Association (NLA), a survey of its members reveals that the number of those choosing to manage and let their own rental home has risen to 43%, that is up from the third quarter of last year's figure of 36%.

The association says that this rise in numbers reflects the growing dissatisfaction that landlords have with increasing letting agent charges after the Tenant Fees Ban was introduced in June last year.

The survey also highlights that the average amount spent by landlords last year for management and letting fees was £3,221.

That's a rise of 59% on the year previously when landlords paid £2,026 in the final quarter of 2018.

Agents charging landlords more to recoup their costs

The NLA's chief executive, Richard Lambert, said: "The tenant fees ban was always going to see agents charging landlords more to recoup their costs and maintain margins.

"The only question was how much landlords were prepared to accept."

He added: "Now landlords are voting with their feet and not paying inflated fees for a letting agent's services. This shows that landlords will only pay what they believe a service is worth and no more."

Mr Lambert said that while a good letting agent can offer a great level of value to landlords who do not want to manage their rental properties, the figures highlight that for a growing number of landlords, their letting agent services are not essential.

Mr Lambert said: "Responsible landlords do and can self manage to save themselves thousands of pounds."

Call to delay electrical safety regulations

Meanwhile, the Residential Landlords' Association is calling on the government to delay its electrical safety regulations in a bid to protect tenants.

The RLA says the changes that are being proposed will remove the obligation for a landlord of a house in multiple occupation (HMO) to carry out electrical safety checks.

The RLA's policy director, David Smith, said: "A good landlord doesn't need to be told to carry out a safety check but the changes to regulations will leave tenants vulnerable to a landlord who is not so responsible.

"It's essential for tenant safety that the loophole is closed and we urge the government to delay its implementation until this happens."