State of the Lettings Industry 2024

With insights from over 1,500 letting agents, landlords, and tenants, this year’s State of the Lettings Industry report reveals the increasing strain on the private rented sector, and the need for innovative solutions.

2024

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This year’s report highlights both the significant challenges and the essential value of the PRS to the wider economy. While we support reforms aimed at raising standards in the industry and improving the quality of housing for tenants, it’s essential that any new policies will allow the sector to thrive economically.

William Reeve

CEO, Goodlord

A sector facing its toughest challenges yet

The private rented sector (PRS) is facing unprecedented challenges. This year’s report reveals more landlords are planning to exit the PRS, reducing supply and driving rents up. Half of tenants now spend over 40% of their income on rent, placing them in "rent poverty." Letting agents are grappling with shrinking portfolios, rising demand, and ever-changing regulations. With growing concerns that government reforms may worsen these issues, the need for innovative solutions is more urgent than ever.

This year’s report covers:

 Tenant demand surging while supply dwindles

 The battle between rising rents and tenant affordability

 The future of lettings under Labour’s legislative changes

 How uncertainty is affecting industry morale

Almost half of landlords are leaving the sector

29.9% of landlords surveyed said they had either sold one of their rental properties or put one on the market in the past year. A further 17.4% of landlords said they were considering reducing their portfolio in the coming year.

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Sentiment crashes to its lowest-ever level
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53%

More than half of letting agents (53.8%) now feel pessimistic about the PRS – the lowest rate in the history of this report, sinking below even the low levels observed in 2023  – the result of a growing sense of unease and uncertainty about the future of the rental market.

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Prospect of Section 21 being axed causing anxiety amongst agents
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69%

There’s real concern amongst letting agents axing section 21 will make the market a more difficult one. The number of agents who believe the legislation would have a negative impact on the sector rose from 56.2% last year to 69.7% this year.

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Download your free report now for even more insights on the lettings industry