A lettings industry mentor has issued a plea to agents to do more to protect their landlords’ livelihoods.
Sally Lawson, founder of Agent Rainmaker, wants letting agents to help landlords suffering the repercussions of Section 24 five years on - including possibly identifying buyers if landlords want to sell up.
“Not only has the rise in mortgage rates led to landlords paying out considerably more each month, but the imposed legislation also means that a landlord is now essentially having to pay more tax on minimal profits” says Lawson.
“This is unsustainable and yet despite the industry appealing to the Government to reconsider, landlords remain in an untenable position and are subsequently having to make some really tough decisions.”
It’s estimated that over a third of a million landlords are considering selling. A report by finance firm Octane Capital states that this mass exodus could wipe over £200 billion from the industry.
Lawson wants agents to communicate with landlords - especially those with mortgages as these will be those most at risk.
She continues: “Communication is key in any landlord relationship, and this goes for the whole agency, including your management team who should make sure that not only are landlords up to date with rents, but that they’re always getting the current rental rates for their property.
“And, if all else fails – as an agent you can support your landlords to find suitable investors for their properties which they can sell as a tenanted investment – getting the buyer to agree to using your managed services, and keeping the tenant in their home.
“Essentially, without our landlords we simply wouldn’t exist as an industry and so for the sake of everyone, we have to do all we can to support property owners navigate their way through this tumultuous time. And we need to do it now.”