Nearly half of all landlords would dump their letting agent if their profits began to fall, new research shows.
According to the UK Association of Letting Agents, 47% of landlords would forego the services of their letting agent if they saw a dip in profits.
The news will come as a blow to letting agents following the recently announced ban on tenant fees which could force many to increase charges to their landlord clients in order to cover their costs.
On a regional basis, landlords in Scotland, the East of England and South East are more likely to depart with their agent, while landlords in the West Midlands and South West are keener to retain the services of their agent.
Richard Price, executive director of UKALA, said: “A significant number of landlords will be hit hard by the tax changes and agents’ fees will be one of the items underneath the magnifying glass if profits begin to decrease.
“As landlords’ costs inevitably rise, agents will need to do more to position themselves as indispensable, and make it obvious that they provide solid value for money. Otherwise, as future tenancies come to an end, landlords will either shop around or start to consider self-managing their properties”.
Richard Lambert, chief executive at the National Landlords Association, said: “Landlords should already be looking ahead to the forthcoming tax changes and working out how they will be able to maintain profitability. That will intensify with the prospect of agents’ fees increasing as a result of the ban on charging tenants.
“However, while it may seem an appealing proposition to minimise your outgoings, the majority of landlords simply won’t have the resources to deliver a service that meets the standards or professionalism that their agent currently provides.”
