Property managers set for Renters’ Rights Act boost

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Property managers set for Renters’ Rights Act boost

Landlords facing heavier compliance duties under the Renters’ Rights Act are expected to drive further demand for professional property management.

Rushbrook & Rathbone says the property management sector is already expanding, with the number of operational businesses rising by 2.8% over the past year.

Its analysis of the latest VAT and PAYE enterprise data shows there are now an estimated 20,105 property management businesses operating across the UK, up from 19,550 a year earlier.

The property management specialist says England accounts for 91.1% of the total, while London remains the largest regional market with 6,200 businesses – or 30.8% of the total.

Landlords face more scrutiny

The firm’s managing director, Roma Sharma, said: “The continued growth of the property management sector is ultimately a positive sign and reflects the increasing complexity of operating within the private rented sector.

“As landlords face greater regulatory requirements, more compliance obligations and increasing pressure around tenant management, maintenance and administration, many are recognising the value of professional management support.

“However, the sector also remains highly fragmented, with the vast majority of firms operating on a very small scale.”

She added: “The introduction of the Renters’ Rights Act is only likely to accelerate this trend, particularly as compliance expectations continue to evolve.”

Fastest growth areas

Research shows that the South East ranks second outside London, with 13.8% of firms, followed by the North West at 9.7% and the East of England at 9.1%.

The East Midlands saw the largest annual increase in operational businesses at 7.9%, followed by Wales at 5.5%, the West Midlands at 4.0% and London at 3.7%.

An estimated 80.9% of property management businesses employ between zero and four members of staff, while only 0.9% have 50 or more employees.

Turnover figures follow the same pattern, with more than 72% of firms reporting annual turnover below £250,000.

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