Letting agent business and market survey

In December 2024, SAL conducted a survey of its letting agent members to find out how their businesses were faring in the current climate.

The headline findings from the survey are that agents are managing to maintain their portfolio sizes despite many landlords withdrawing properties from the sector. The demand for vacant properties has reduced compared to this time last year with agents reporting fewer enquiries from prospective tenants. Annual rent increases are becoming more prevalent but a surprisingly low number of tenants choose to exercise their right to challenge rent increases.

67 agents responded to the survey with a collective portfolio of 14,500 private rented sector (PRS) properties under management. Respondents manage an average of 216 properties. Based on an extrapolation of data from this survey and a similar survey we conducted in December 2024 of our landlord members, we estimate that SAL members are involved in owning or managing approximately 168,341 properties in Scotland, 48% of the 350,500 properties in the Scottish PRS.

Agents responding to the survey reported that 8.4% of their previously managed properties have been withdrawn from the PRS during 2024. However, they did report taking on slightly more new properties leaving overall portfolio sizes about 0.37% higher than in 2023. A landlord survey conducted in December 2024 indicated that the size of the PRS is reducing so the fact that agents are managing to keep their portfolio sizes fairly stable may indicate that an increasing proportion of landlords are choosing to use an agent rather than self-manage.

On average respondents employ 3.8 members of staff (full time equivalent). 21% have fewer members of staff than this time last year, 20% have more staff and 59% have seen no change in the number of staff employed compared to December 2023.

At the time the survey was carried out, just 3% of the properties under management were being marketed for new tenants. The average time taken to find suitable tenants for available properties was reported to be 15 days (up from 11 days in December 2023), with an average of 27 enquiries per property (a significant decrease from 47 enquiries per property in December 2023).

Agents responding to the survey estimated that around 44% of their tenants are paying a rent which is below the open market rental value. This compares to a figure of 50% reported in an identical survey question 12 months ago.

During 2024, 46% of tenants were issued with a rent increase compared to just 12% of tenants in 2022 and 33% in 2023. A surprisingly low proportion of tenants challenged the rent increases they received during 2024. 2.5% negotiated a lower increase directly with their landlord/agent and only 1% appealed the rent increase through the rent officer. For those who did apply to the rent officer, in 37% of cases the rent officer set the rent at a figure lower than that which had been proposed in the rent increase notice. These low rent increase challenge figures echo similar findings in our landlord survey.

The survey findings will with SAL’s policy work and we are hugely grateful to the many members who took time to complete the survey.

Not yet a SAL member? Join today and have your voice heard.