Jan

Letting agents report ‘perfect storm’ facing them and their landlords

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Letting agents are worried about landlords selling up, new legislation, rising costs and an upsurge of abuse across the sector.

A Properymark survey found that most feared landlords quitting because agents can no-longer afford to let property (80%), the impact of new laws (66%), rising costs (55%) and abuse from tenants (33%). The body says that it is aware anecdotally that abuse cases have been on the rise over the last year.

In its annual review of 2022 and outlook for 2023, agents reported that the biggest opportunity for their businesses was the chance to expand their portfolios as they encouraged more landlords to turn to full management and take over the properties of competitors who hadn’t survived the economic downturn.

Their biggest concerns for landlords in the year ahead were the impact of incoming legislation (80%), diminishing yields (44%) and issues with damp, condensation, and mould (35%).

Landlords’ biggest opportunity was seen as the potential for increasing yields (57%) – but only certain investors.

Rising costs

Those with buy-to-let financing and fixed-terms coming to an end this year would see their costs increase significantly due to rising interest rates, but those without mortgages on their let property should see yields rise as house prices drop and rents rise.

This would herald a chance for further portfolio investment.

Agents’ fears for tenants include rising utility costs (78%), closely followed by a lack of available properties (74%) and rising rents (68%).

CEO Nathan Emerson (pictured) says: “Demand for rental property has grown by 57% since 2018, when Propertymark records began. At the same time, there was no growth in the size of the private rented sector to house these tenants.”

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