London sees lowest growth in last decade but has highest fees
Property management fees for landlords have surged across England over the last decade, but with growth of 53.9%, the Midlands has seen the biggest rise, while the East Midlands has witnessed fees rise by 57% since 2016. West Midlands fees have increased by 50.9%.
The research by Rushbrook & Rathbone, shows that the Midlands outpaces the rest of the North and South in terms of growth.
However, by cost, the South remains the most expensive. The estimated average annual management fee across the South, including London, now stands at £2,168 and hits £3,303 per property in London. That compares to £1,353 in the Midlands and £1,237 in the North.
Regional rises
London’s fees have risen 37% over the past decade, but although the most expensive, the growth rate is actually the lowest of those analysed.
Across the wider South East, average annual property management fees now stand at £2,042, following a 44.8% increase since 2016. The South West has seen a 52.2% rise over the same period, the largest of all southern regions, with fees now averaging £1,777 per year.
In the North of England, property management fees remain the lowest overall, but have still recorded strong growth over the past decade. The average annual fee across the region now stands at £1,237, up 48.2% since 2016.
Within the North, the North West recorded the highest growth at 56.9%, followed by Yorkshire and the Humber at 45.1%, and the North East at 43.7%.
Roma Sharma, managing director of Rushbrook & Rathbone, said: “The regional differences highlighted by this research reflect the diverse nature of England’s rental market and the varying rental values that property managers are responsible for overseeing.
“While the South continues to command the highest management fees in absolute terms, it’s notable that the Midlands has seen the fastest rate of growth over the last decade, reflecting the strength of rental demand and rental value growth across the region.
New challenges for landlords
“Property management today is also very different from what it was ten years ago. Landlords are operating in an increasingly regulated environment, with greater compliance responsibilities, higher tenant expectations, and more complex operational requirements than ever before.”
Sharma said that such changes mean that professional property management plays an increasingly important role in protecting landlords’ investments and meeting new compliance requirements.
Sharma said: “The data demonstrates the continued growth and maturity of the private rental sector across all parts of England. While regional differences remain, the common theme is a growing recognition of the value that professional management brings to landlords and tenants alike.”
