Two-thirds of landlords in the UK now use lettings agents for some or all aspects of property management, marking the highest level of agent engagement in two years, according to research from Pegasus Insight.
The proportion of landlords employing professional agents has risen from 61% in the first quarter and 62% a year earlier, with demand for full property management services driving the increase.
A quarter of rental properties now use a full management service, up five percentage points from 20% in the previous quarter. The shift comes as landlords navigate an increasingly complex regulatory environment, including implementation of the Renters’ Rights Act and changing compliance requirements.
Time commitment varies significantly
The research reveals substantial differences in time commitment between self-managing landlords and those using professional services. Landlords who manage properties themselves spend an average of 51 hours per month on rental management, compared with just 11 hours among those employing a full management service.
Overall, landlords spend an average of 33 hours per month overseeing their portfolios. The time commitment increases with portfolio size, from 18 hours per month for those with one to five properties to 83 hours for landlords with 11 or more properties.
For properties not fully managed, 34% of rental properties use an agent solely to find tenants, while a further 6% employ an agent for letting and rent collection. The remaining 34% are managed without an agent.
Portfolio size and management approach
Larger buy-to-let borrowers are not necessarily more inclined to outsource management. Among landlords with four or more buy-to-let mortgages, 39% of properties are self-managed, compared with 31% among those with one to three mortgages and 33% among those without mortgage borrowing.
This pattern may reflect the higher proportion of full-time landlords among larger portfolio holders. Some 37% of those holding four or more buy-to-let mortgages operate full time, compared with 13% of those with one to three mortgages and 18% of those with no mortgage borrowing.
Bethan Cooke, director of Pegasus Insight, said: “Being a landlord has become an increasingly demanding responsibility, and the legislative and regulatory changes now facing the private rented sector are adding to that complexity.”
She added: “The difference in the amount of time spent managing properties is striking. For landlords who are juggling rental responsibilities alongside other commitments, or who are concerned about keeping pace with changing requirements, a good letting agent can provide valuable expertise and take on a substantial administrative burden.”
The findings suggest professional agents are playing an increasingly important role as regulatory requirements expand. The trend towards professional management services may continue as landlords assess the time and expertise required to meet their obligations, particularly as younger generations prioritise home ownership and demand for rental accommodation remains under pressure.
