Editor's note: This brief was summarised by The Property AI Newsroom from a report by Letting Agent Today. Read the original article for full details.
Landlord exits are a service problem, not just a market problem, says agent
Some letting agencies have lost as much as 15% of their managed stock over the past year, according to Sally Lawson of Concentric Lettings. She argues that while landlords are selling, self-managing, moving to cheaper agents, or leaving the sector altogether, calling this a "landlord exodus" is misleading, and that agencies are not powerless to influence what happens next.
What the data shows
Lawson points to the Government's English Private Landlord Survey 2024, in which 31% of landlords said they were planning to reduce their portfolios during the following two years, including 16% who intended to sell everything. Only 7% planned to grow.
She acknowledges that pressures on landlords are real: the Renters' Rights Act has removed Section 21, assured tenancies have become periodic, possession procedures have changed, rent increases are more controlled, and further measures are still being implemented. Some landlords are also highly geared and hit by refinancing costs, while others face rising repairs, insurance and compliance costs, own properties producing a poor return on equity despite strong appreciation, or are approaching retirement without an orderly five-year exit plan.
A service problem, not just a market problem
In Lawson's view, many landlords are leaving because nobody has shown them how to stay profitably, restructure an underperforming portfolio, reduce their risk, or exit in a properly planned way. She describes this as a service problem rather than simply a market problem.
She also notes that some landlords who appear to be exiting are not actually leaving property investment. They are selling the wrong property, moving money into a better-performing area, or changing how they manage their portfolios.
What agents can do differently
Lawson argues that too many agents treat all landlords the same, sending generic newsletters, offering the same management package, and only making contact when something needs signing, fixing or paying for. She says that is no longer enough.
She cites one branch within her own agency, Concentric Lettings, which has grown its managed stock by more than 25% organically while other agencies have been losing properties. She does not suggest every landlord can or should be persuaded to remain in the sector, but says this shows significant growth is still available to agencies willing to serve landlords differently, starting with understanding which landlords are at risk of leaving, and why.
Source: Letting Agent Today