Increasing numbers of letting agents consider giving up as worries weigh on the sector

Increasing numbers of letting agents are concerned about the future of the industry while more employees are worried about the future of the firms they work for.

Lettings platform Goodlord’s latest state of the industry report has found that one-third of agents are worried about making ends meet.

The research finds that agents are concerned about the fallout from the tenant fees ban, plus upcoming electrical safety standards and the implications of new mandatory qualifications being proposed.

There is also major concern about suppliers’ prices, with 31% expressing concern over price hikes this year.

Agents are also worried about falling rental volumes as landlords exit the market.

A new poll conducted last month – of 200 agents – has found that 40% are “pessimistic” or “very pessimistic” about the future of the industry, up from 23% when a similar survey was conducted six months ago.

Employees show declining confidence in the strength of the firms they work for, with 56% optimistic about the future of their employer. This is down from 60% previously.

More agency bosses say they would “definitely consider” selling their agency than six months ago, increasing from 5% to 13%, while a further 26% said they would “probably” consider selling, up from 10%.

Only 16% of survey respondents say they would “definitely” consider buying another agency if the opportunity presented itself, down from 29% who said the same six months ago.

Tom Mundy, chief operating officer at Goodlord, said: “With revenues for 85% of agents hit by the Tenant Fees Act, it’s no surprise that many are expressing concerns for the future.”

https://info.goodlord.co/goodlord-state-of-the-industry-report-winter-2020

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2 Comments

  1. LetItGo

    No surprise there then….squeeze the sector and it pops.

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  2. Woodentop

    The main concern for the industry is affordability.

     

    Costs going up and income going down.

     

    Agents have been underselling their services for some time. Fees need to go up but stuck with landlords yield and rent affordability to pay for it all. Government needs to stop and reconsider its actions, for it is the death of a thousands cuts for some agents. I blame the industry organisations for not making this clear enough, instead of running along and agreeing with “it looks good on paper”. Changes need to be made but the consequences seem to be ignored.

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