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Worrying news for agents as landlords ‘prefer direct management’

New study by academics in Bristol highlights the controversial findings from major probe into attitudes among landlords.

Robyn Hall

To let

A major new study into the private rented sector (PRS) reveals the main reason landlords choose NOT to use letting agents is that they prefer direct relationships with tenants and their own ability to handle the property management role, it is claimed.

Understanding landlord behaviour in the Private Rented Sector in the UK by Dr Jennifer Harris and Professor Alex Marsh from the University of Bristol also shows landlord dissatisfaction with services provided by letting agents also operates as a deterrent.

INTERVENTIONS

The report says understanding the reasons why landlords behave as they do is fundamental to developing effective regulatory interventions.

A number of landlords had misconceptions on the subject of ultimate liability in relation to property standards.”

It reveals: “A number of landlords had misconceptions on the subject of ultimate liability in relation to property standards. 50% said ultimately the letting agent is responsible or that responsibility is shared, whilst 17% did not think or did not know if landlords should still treat compliance as important when using a letting agent.”

Participating agents used a range of approaches to encourage compliance, which could involve threats as well as persuasion.

INFLUENCE

Surveyed landlords indicated that letting agents have a significant influence over key decisions including setting rent and selecting tenants, and, to a lesser extent, extending a tenancy agreement and repairs and maintenance. However, most said letting agents had no influence on decisions relating to upgrades or improving energy efficiency.

The findings suggest that landlords’ experiences of letting agents can vary greatly.”

The report adds: “The findings suggest that landlords’ experiences of letting agents can vary greatly, with many reporting problems and issues with their services.”

Agents felt that although a thorough understanding of the regulations is less important among landlords who instruct an agent, some level of comprehension is still necessary because ultimate liability remains with the landlord.

CULPABLE

One letting agent told the study: “Obviously if there’s no gas certificate in a property, ultimately the landlord is culpable for that should anything go wrong, so they really should know what is going on, we do try and obviously tell them as much as possible.”

The study findings are based on a survey completed by 1,002 landlords and on 68 in-depth interviews with landlords, letting agents and experts in the field.

November 9, 2022

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