Many letting agents are planning to raise their fees based on extra work created by the Renters’ Rights Act, new research reveals.

But for landlords this will be “the straw that breaks the camel’s back” meaning some will decide to self-manage their properties or even exit the PRS.

Discontent

Lettings tech firm Goodlord surveyed 2,650 agents, landlords and tenants before finding discontent amongst landlords.

Landlords cite high fees and poor value as their biggest frustration (59%), and just 6% are very satisfied with value for money.

Agents may increase their fees “but this data suggests they haven’t built enough goodwill with landlords to get away with it”.

A fee rise landed on top of existing frustration risks being the straw that breaks the camel’s back.”

“A fee rise landed on top of existing frustration risks being the straw that breaks the camel’s back, pushing landlords to risk self-managing, switch or exit the sector, right when agents can least afford the churn,” Goodlord says in its report ‘Is Renting Broken?’.

Three quarters (76%) of agents describe an ‘admin avalanche’ in their day-to-day work.

“That pressure does not stay behind the scenes, it shows up in the areas that matter most,” Goodlord says.

Frustrated

“When it comes to the tenant experience, 52% of tenants say prompt repairs are their single most important improvement need, and 46% are very or extremely frustrated by slow maintenance response.”

Tom Goodman, MD B2B at Goodlord, says: “The limits in this report are not abstract challenges. They are the daily reality of agents, landlords and tenants navigating a market under more pressure than at any point in a generation.”

And William Reeve, CEO at Goodlord, says: “The rental market is experiencing a once-in-a-generation transition. It’s a matter of urgency that the rented sector responds proactively in a way that builds a better market for the next generation to come,”

More on the Renters’ Rights Act