A recent survey indicates that 58% of landlords who currently use a letting agent expect to manage their properties themselves within the next two years. This includes handling the associated compliance work.
The August Landlord Survey also found that 69% of all landlords surveyed are likely to be managing all their properties themselves within two years. Among landlords who pay for management, 58% reported fees of at least 11% of rent.
Richard Samuel, chief executive of the firm, stated that the government has been adding obligations to landlords for a decade. He highlighted quarterly digital tax reporting as a significant new requirement, estimating it takes days, not minutes, for landlords to complete. He also mentioned the new database, ombudsman, periodic tenancies, and paperwork for rent increases as contributing to a substantial compliance workload for small landlords.
Almost two-thirds (65%) of the 276 landlord respondents have changed their management arrangements in the past two years. While 27% have moved from an agent to self-management, 26% have started using an agent. Compliance and legal complexity were cited as the primary reasons for these changes, ahead of wanting more control, poor service, and fees.
For landlords subject to Making Tax Digital, three-quarters expect each quarterly update to require at least four extra hours. Specifically, 41% anticipate four to eight hours per update, amounting to 16 to 32 hours annually for quarterly submissions. A further 34% expect each update to take more than a working day.