2,000 agents, landlords and tenants share views in sixth annual State of Industry Report
Letting and estate agents need to be looking at doing things faster and smarter to keep up with high tenant demand, so here are 8 ways that agents can save time.
Goodlord and Vouch have today released the sixth annual State of the Lettings Industry report. This landmark report brings together the views of more than 2,000 letting agents, landlords and tenants from across England, Wales, and Scotland, who were surveyed on more than 100 topics.
Here are some of the headlines:
- Industry sees intensifying tenant demand
- Mounting evidence that landlords are leaving the market
- Fears around Renters (Reform) Bill increasing
- Wider regulations changes causing concern
- Rising cost of rent drives anxiety amongst tenants
Industry sees intensifying tenant demand
Following many months of media discussion around rising tenant demand and landlords leaving the market, this year’s report offers tangible insights into what’s happening on the ground.
Over the last 12 months, 78% of letting agents saw increased demand for tenants looking for homes. However, 58% of agents also reported an increase in the scarcity of available properties.
Mounting evidence that landlords are leaving the market
Over the last 12 months, 95% of letting agents saw at least one of their landlords sell at least one of their properties. Nearly a quarter of letting agents saw up to 20% of their landlords selling at least one of their properties.
However, whilst a full-blown landlords exodus has not yet come to pass, 80% of letting agents said they expected more landlords to leave the sector in the next 12 months - 36% said they believed it would be a “significant amount”.
Fears around Renters (Reform) Bill increasing
Landlords are overall feeling pessimistic about the introduction of the new rules - with 25% feeling “very” pessimistic and 29% feeling “somewhat pessimistic” (54% in total). Only 14% of landlords are feeling at all optimistic.
55% of agents cited the upcoming Renters (Reform) Bill as a factor driving landlords out (a statistic which is 15% higher than when agents were polled on this question last year). 56% of landlords also cited the Renters (Reform) Bill as a reason for leaving the sector.
Wider regulations changes causing concern
Despite Government promises to push back the new rules around Minimum Energy Efficiency Standards, 78% of letting agents believe the current plans for EPC requirements will have a negative impact on the private rented sector.
Overall, agents are feeling optimistic about their ability to handle upcoming regulatory changes. 74% of agents said that they felt confident to cope with future legislation changes. In contrast, only 44% of landlords felt the same.
Rising cost of rent drives anxiety amongst tenants
Over the last 12 months, the average rental price for a home in England has risen by 10%. In August 2023, prices hit an average of £1,347 per property, up from £1,227 in August 2022.
Although 71% of tenants agreed their income was secure, only 30% said paying their rent was not an issue. In fact, 39% of tenants said their biggest worry was paying the rent.
Download the full State of the Lettings Industry report here.