The proportion of rental properties using letting agents has reached a two-year high, with 66% now employing an agent for some or all aspects of the letting process in Q2.

The latest Landlords Trends research from Pegasus Insight found this figure has risen from 61% in Q1 and 62% a year earlier, following a growth in demand for full property management services.

A quarter (25%) of rental properties now use a full management service, up from 20% in the previous quarter.

Pegasus Insight said its findings come as landlords face an increasingly complex regulatory environment, with the implementation of the Renters’ Rights Act, changing compliance requirements and continued pressure on rental accommodation placing further demands on property owners.

The research revealed that, for those properties now 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.

Furthermore, landlords are spending an average of 33 hours per month overseeing their portfolios, and those who manage their properties themselves spend an average of 51 hours per month on rental management. This compares to 11 hours among landlords employing a full management service.

The time commitment also increases considerably with portfolio size. Landlords between one and five properties spend an average of 18 hours per month managing their rentals, rising to 83 hours for those with 11 or more properties.

Director at Pegasus Insight, Bethan Cooke, stated: "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. It is perhaps unsurprising that more landlords are choosing to seek professional support, particularly with the day-to-day management of their properties.

"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.

"As the responsibilities associated with letting property become more complex, professional agents have an increasingly important role to play in helping landlords understand and meet their obligations, while ensuring tenants receive a professional and responsive service."

---