One of the UK’s largest agents has warned that 60% of its landlords will leave the market if rent controls are introduced.

Hunters, which has 128 outlets, is the UK’s sixth biggest agent by branch number.

Yesterday, managing director Glynis Frew said: “Whilst we are seeing positive activity in the lettings market, we are concerned about the introduction of rent control legislation and banning of lettings agents’ fees that some parties are considering introducing.

“This will only result in higher rents which cannot be fair to tenants.

“Some 60% of our landlords have said that they would exit the rental market if such rent controls were put into place.

“Good landlords already have to abide by a host of new pieces of legislation and we feel this sector needs more support, rather than prohibitive measures.

“The lettings market is a very important part of the UK’s housing sector infrastructure that is often overlooked.

“Figures suggest that we will see an additional 1.2m households in England and Wales in the private rented sector by 2019 and a continued trend in more and more people opting to rent rather than buy.”

Yesterday, lettings business Leaders revealed an expansion into estate agency – a path already taken by lettings specialists Martin & Co and Belvoir.

Smaller businesses are also diversifying, including Polecat Properties in Bexhill-on-sea, Sussex.

The firm, founded as a single lettings office, said it will be offering sales from next month, covering all parts of East Sussex.

The firm said that while there is a strong local rental market, it foresees a shortage of letting properties. It also said that a new link road, and plans for large numbers of new houses, suggested a stronger selling environment.

It said: “With stricter laws imposed on landlords in the pipeline, in particular a landlord licensing scheme (which will be implemented in some areas we cover), we envisage a shortage of properties to rent out.

“Policies restricting buy-to-let investors lead us to assume that a fall in rental properties will be accompanied by an increase in properties for sale.

“Our progression into sales seems a natural and sensible choice.

“We relish the thought of learning from, and challenging, our peers.”