Almost 1m landlords plan to ditch agents to save money from April 2017
A new survey has suggested that nearly half of all UK landlords plan to ditch letting agents if their profits fall when tax relief is cut back next year.
The poll conducted by the National Landlords Association (NLA) found that 47% of property investors are prepared to ditch their letting agents and go it alone when new tax cuts kick in from April next year.
The removal of tax relief on mortgage interest over the next four years has been widely tipped to wreak havoc on PRS landlords’ profits, with many warning they will have to hike rents to cover their increasing costs or even sell up altogether.
The NLA’s research shows that:
- 26% of landlords who use letting agents to manage all of their properties would cut them loose in the face of diminishing profits.
- 21% of landlords who use agents on a let-only basis for all their properties would also ditch them.
- 36% of landlords claimed they would retain the services of their agent even if their profits were compromised.
These survey results will come as a further blow to lettings agents who already face a drop in their income after the Chancellor of the Exchequer announced banning tenancy fees in last month’s Autumn Statement.
The question now is whether letting agents will seek to pass costs onto landlords, which coupled with various tax changes, including the scrapping of mortgage interest relief from April 2017, would make it even harder for buy-to-let investors to make a profit.
Many news sources are reporting this as ‘bad new for landlords’, however we believe there is a positive spin
on this. Primarily, this is the perfect opportunity for landlords to become accredited and learn how to
efficiently self-manage their properties to keep their costs (and rents) down.
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