LETTINGS LIVE 2012
THE PROPERTY ACADEMY’S
LANDLORD AND TENANT SURVEY
Findings from the 5,500 responses returned to The Property Academy between 10th April and 11th May 2012, with 14.6% of the responses from London and 34% from South East (our location):
1. How long have you been a landlord?
5 – 10 years 23%
3 – 5 years 22%
0 – 1 year 21%
2. How old are you
60 – 69 22%
50 – 59 27%
40 – 49 24%
3. How many rental properties do you have?
1 property 62%
2-5 properties 31%
6+ 7%
Out of the responses:
Tenant Find Only 14%
Rent Collection 15%
Full Management 52%
4. What fee do you pay?
Tenant Find Service
Fee of 8% = 17%
Fee of 10% = 27%
Rent Collection Service
Fee of 10% = 29%
Fee of 12% = 12%
Fully Managed
Fee of 10% = 27%
Fee of 12% = 23%
Fee of 15% = 10%
5. 18% chose the agent who offered the cheapest fee, out of this 23% were in London
6. 82% did NOT chose the agent who offered the cheapest fee
7. 45% tried to negotiate on the fees, of which 63% were professional landlords
8. 88% did NOT chose the agent who offered the highest valuation
9. Location:
46% have their rental property/ies within 15 miles of their own home
11% live 15-40 miles away
43% live over 40 miles away
10. 51% chose their agent because of their location
and
31% visited the agent’s office
29% visited the agent’s website
15% visited the agent’s office and the agent’s website
25% DID not visit either the agent’s office or their website
11. 41% only got one agent to value their house
35% got in 2 agents
20% got in 3 agents
3% got in 4 agents
1% got in more than 4 agents!
12. 65% were 1st time landlords
23% had rented a property previously
and
11% used the same agent as previously used
13. 87% of landlords wanted their property to be advertised on Rightmove
47% on Findaproperty
30% on Prime Location
27% on Zoopla
14. The landlords were asked:
If you were happy with your current tenants and they wanted to renew the tenancy but AT THE SAME RENT
But…
A lettings agent offered to get you move in the current market, would you give notice to your tenant and get in a new tenant?
63% said they would stick with the tenant because they were happy with them
Of the landlords who said they could be persuaded to change tenants…
4% said they would want a rent increase of 5%
13% said they would want a rent increase of 10%
9% said they would want a rent increase of 15%
12% said they would want a rent increase of 20%
15. The current primary concerns of the landlords are:
a. Void periods 36%
b. Damage to property 28%
c. Rent arrears 17%
d. Dilapidation 9%
16. How likely would the landlords be to increase their portfolio this year?
9% highly likely 18% possibly 34% unlikely 36% would not
And if we remove ‘accidental’ landlords from the equation (those landlords who only ever rented their property because it wouldn’t sell):
14% highly likely 26% possibly 37% unlikely 20% would not
17. Tenants were asked if they felt ‘trapped’ into being tenants and would prefer to buy a property:
31% have no plans to buy 22% wish to buy in 3 years 27% wish to buy in 2-3 years
20% wish to buy in the coming year
18. Asked if they would recommend their current agent:
Tenants 2012 said yes 60% Landlords 2012 said yes 77%
In addition from a recent Rightmove study:
The UK now has 66% home ownership
France has 57%
and Germany has 47%
In 1980 12% of the population were in the Private Rented Sector
In 2005 still 12%
In 2011 increased up to 17%
Predicted to hit 20% by 2016 – that’s one in five people will be renting!
Rental prices are up by 7.2% over the last year in London and 5.2% average for the UK
61% of tenants expect rents to rise in the next year
85% of landlords use their lettings agent because
- Good service & staff expertise
- No void periods
- Good tenants who stay for a long time
- Competitive fees & value for money
- Strong presence on Rightmove
1 in 3 landlords do NOT know other landlords