Letting agencies are facing a notable reduction in their managed property portfolios, with some reporting losses of up to 15% over the last year. This trend is occurring as landlords choose to sell properties, manage them themselves, or switch to more affordable agents.
According to Sally Lawson, while factors such as the Renters’ Rights Act, taxation, mortgage costs, and complex regulations contribute to these pressures, they do not represent the full picture. The Government’s English Private Landlord Survey 2024 found that 31% of landlords intended to reduce their portfolios over the subsequent two years, with 16% planning to sell all their properties. Only 7% aimed to expand their portfolios.
Lawson suggests that many landlords are leaving because they have not been shown how to remain profitable, restructure underperforming portfolios, reduce risk, or plan an orderly exit. This indicates a service problem within the industry, rather than solely a market issue.