In September, letting agents managed on average 193 properties per branch, up from 183 in August and the highest level since April 2015 when there were also 193 rental properties registered per branch.
Demand for rental properties also rose in September, ARLA has reported, with 40 prospective tenants registering interest per letting agent branch, compared with 37 in August, and the highest level of demand since February 2015.
The number of agents witnessing rent hikes for tenants is at the lowest level so far this year, with just 24% of agents reporting increases.
ARLA managing director David Cox said: “This month’s findings paint a really positive picture for renters.
“Although demand is rising, we’ve seen this happen gradually over the course of the year, and would expect it to slow again in line with seasonal trends over the next few months.
“On the other hand, the supply of rental stock has risen astronomically, which suggests it’s not quite right that landlords are pulling out of the market as a result of Brexit.
“This is supported in our findings, which reveal that the number of landlords selling their buy-to-let properties hasn’t changed since April, when three landlords were selling up per branch.
“It’s good to see fewer landlords hiking rents this month, but 24% is still too high.”
Comments (3)
My thoughts exactly @Mark Walker
My figures might potentially be a bit high because I’m Down South (but outside London).
Lets assume that the average let is £1,000pcm.
Let’s assume that the average managed fee is 8% (when I worked up in Epsom a few years ago we struggled even to get this).
That makes the annual income from the average let £960.
With just 193 properties that’s a total income of £185,280.
Given the workload that 193 managed properties generates, I don’t think that managing properties makes much sense until economies of scale can be brought to bear.
Unless of course you make a profit by charging tenants fees, taking a percentage of all works undertaken, and etcetera.
Even lettings agents are feeling the effects of the credit crunch then, because, to survive, a lot of sales agents became (poor quality) lettings agents.
most agents will earn about at least half again in fee and other income i.e.
tenant initial fees, landlord admin, renewal fees, contractor commission, insurance and utility companies
how many staff, do you need for 193 properties? about 3 i reckon
Only 193???????????