Shock warning that quarter of landlords considering stopping using agents
More than a third of landlords are looking to cut their annual spending – and many of them are considering ending their use of letting agents, according to the latest research by Kent Reliance.
The lender, part of OneSavings Bank, says the average landlord now spends £3,571 per property in annual running costs, before tax or mortgage interest – equivalent to 32.9 per cent of rental income.
These costs have risen by 5.6 per cent in the last two years without factoring in increasing taxes. Since the start of 2009, costs have jumped by 28 per cent, a rise of £771.
Some £1,086 is currently spent on maintenance, repairs and servicing, and £935 spent on letting agent fees per property.
A typical landlord spends £426 per property each year in ground rents and service charges. Insurance typically costs £149, and legal and accountancy fees £107, while administrative and license fees add another £64 per year.