Online agency Upad claims it has seen a 44 per cent annual growth in repeat business for its digital lettings service, which now handles over 10,000 properties.
The firm claims this would be the equivalent of a 60 branch high street agency.
“Swathes of landlords [are] under mounting financial pressure looking for ways to bring down their costs in order to keep buy to let as a profitable exercise. It makes sense that one of the first things they will look at is the agent they use to manage their property as well as scrutinise every single cost associated with this” says James Davis, chief executive and founder of the agency.
He claims that if high street agents are banned from levying fees on tenants and instead shift the burden to landlords, it could mean “upwards of £500 per tenancy” for the landlord.
The situation will worsen further when, by 2020, mortgage interest will no longer be tax deductible and landlords will receive a tax rate based on gross income and then paid a flat 20 per cent rebate.
“Whether or not this is the right approach, landlords who want to stay ahead of the game are going to have to assess their strategy in order to stay in the black” claims Davis.