A major survey of lettings agents suggests that 42% feel unable to cope with the workload.
Some 33% cite stress as a significant issue and 19% even claim they are struggling with what the survey calls “mental health challenges.”
The survey has been conducted by PropTech supplier Goodlord and shows that 54% of agents are now pessimistic about the state and future of the private rental sector.
Letting agents say they are prioritising attracting new landlords, securing property stock, and ensuring compliance to stay ahead of the competition.
The survey also covers landlords and tenants and other key findings include:
Landlords are heading for the exit – 30% of landlords said they had either sold one of their rental properties or put one on the market in the past year. A further 17.4% of landlords said they were considering reducing their portfolio in the coming year. More than half (58%) of letting agents reported a decrease in the number of available properties – with 37.4% noting a “significant” decrease.
Legislation driving landlord exodus – When asked what was driving their desire to leave the market or reduce the size of their portfolio, more than half of landlords (56%) planning to downsize or exit the market said incoming legislation – such as the Renters’ Rights Bill, in particular the abolition of Section 21 – was the primary reason. Letting agents agree – two-thirds (66%) believe the new Bill will ultimately lead to fewer rental properties being available.
Opposition to EPC regulations – Over half of landlords (52%) also said new rules around energy efficiency standards would be a reason for leaving the sector.
Almost a fifth of landlords whose properties don’t meet the minimum threshold said they aren’t prepared to invest anything in upgrading their properties.
Rising mortgage rates, increased arrears, and tax changes are also driving landlords to sell up.
Tenants competing for fewer properties – The survey also highlighted the intensifying pressures being felt by tenants as they compete for properties in a market where demand continues to outstrip supply. More than three-quarters of agents said they’d seen an increase in the number of tenants searching for properties. Almost half of agents (49.1%) described that increase as “significant”.
Price rises put tighter squeeze on more tenants – Rents have continued to surge in 2024, with the average monthly rent in England hitting £1,470 per month in July. Only a fifth (18.5%) of landlords said they haven’t increased the rent on any of their properties over the past year.
