A survey by rental software firm Ark shows that although 77 per cent of landlords want to invest and grow their portfolio, their efforts are being hindered by compliance. Almost three in 10 say they won’t invest further because they believe rules and regulations are stacked against them.
Ark’s head of partnerships Angus Reid explains: “The industry is at a pivotal point; we have smaller landlords quitting because of compliance and the rise of institutional investors. That negatively impacts stock already in short supply. While it’s imperative that rules and regulations protect landlords and their tenants, the system can create headaches that take time and money away from better tenant experiences, and ultimately deters landlords from investing in more, much needed rental homes.”
The solution for many landlords is instructing letting agents; 56.4 per cent of landlords questioned admitted using agents to ensure they are compliant’, with over a third paying £1,000 to £2,000 annually.Some 71 per cent of landlords admitted the reason they use an agent is to not get caught out by regulation changes, even though they may not see any other added value.
Reid continues: “For those [landlords] who do decide to handle it themselves … their time is consumed by the process; something has to change.”