Editor's note: This brief was summarised by The Property AI Newsroom from a report by Landlord Today. Read the original article for full details.

Landlords Leaving Sector Due to Hidden Costs, Report Claims

Landlords are leaving the private rental sector because of hidden costs that undermine profitability, according to a report by Landlord Today. The report states that these costs extend beyond widely discussed issues such as higher mortgage rates and proposed EPC regulations.

LandlordBuyer, cited in the report, highlights that the true cost of owning a rental property is increasing sharply. Factors contributing to this rise include licensing schemes, insurance premiums, maintenance inflation, and compliance requirements. The impact is said to be particularly significant for smaller landlords who own one or two properties.

For UK letting agents and inventory clerks, these developments may affect the availability of rental properties and the dynamics of landlord engagement. The report underscores the growing financial pressures faced by landlords in the current market.