Letting agents expect a 71% reduction in buy-to-let investors this year, which will reduce available stock and weaken a key source of portfolio growth, according to a study from Iamproperty.

The proptech firm interviewed more than 320 agents who said it was forcing a shift away from landlord-led expansion towards owner-occupiers and needs-based movers, with agencies spending more time supporting sales transactions and diversifying their income streams.

Staffing levels

Others added that they are reviewing staffing structures and future skills as they move away from volume lettings towards more service-led work.

At the same time, agents described a “double-edged sword”, with rising rents but declining stock levels limiting growth.

One contributor said: “It’s two steps forward, one step back. Rents rise, but stock just isn’t there.”

The report also highlights regulatory pressure as a key driver of landlord exits, with only 26% of agents saying they feel optimistic about the current environment.

One of the agents interviewed explained: “We’re certainly seeing a lot of landlords selling up ahead of the incoming Renters’ Rights legislation, and we totally get it.”

Agents are adapting quickly, with many telling us they are changing their strategies.”

Ben Ridgway (pictured), Co-Founder at Iamproperty, says: “Letting agents are navigating a significant shift in the market, and it’s forcing agencies to rethink how they grow and operate.

“At the same time, agents are adapting quickly, with many telling us they are changing their strategies, reviewing their customer focus and preparing for a different mix of business. This report gives letting agents a clear view of how their peers are responding and where the market is heading.”

You can read the full report here.