Letting agents look to existing landlord clients for growth as stock dwindles
Goodlord's annual lettings sector report shows 5% of landlords have left sector, forcing to agents to sweat their existing customer base harder.
Letting agents are increasingly looking to increase revenue from shrinking stock levels rather than take on new landlords, the latest State of the Lettings Industry report.
The annual study, which takes the temperature of the lettings market, discovered that 27% of respondents have put winning new business at the top of their to-do list, down from 44% in 2020.
Lettings experts Goodlord and Vouch found that generating revenue and decreasing admin time were growing in importance, as almost half of agents say more than 5% of their landlords have left the sector in the past year due to the stamp duty holiday and mounting regulation.
Their poll of 550 UK agents and 1,700 tenants highlights the divergence between them, as 38% of tenants believe that the repeal of Section 21 will have a major and positive impact on the private rental sector, while 30% of agents believe it will have a major and negative impact.
Arrears
The number of lettings agents reporting an increase in arrears has halved since the previous survey, dropping from 64% to 32%, with an additional 14% of agents saying arrears have fallen during the past year. However, a small but worrying minority of 16% say arrears among their tenants have increased by at least 30%.
Agents remain optimistic, although the industry is showing some signs of caution following 18 months of uncertainty, as although 67% feel either “very optimistic” or “somewhat optimistic” about the future of the lettings industry, this was down from 80% in September 2020.
Tom Mundy, COO of Goodlord (pictured), says sourcing new revenue streams, embracing technology, and streamlining processes are all gathering pace, as agents make their businesses fit for the future. He adds: “After a year like no other, these insights offer a picture of a resilient, forward-thinking industry which is moving with the times and responding to major shifts in tenant demand and landlord behaviour with characteristic stoicism and professionalism.”