"Whilst most landlords trust their letting agent, there is still a sizeable minority who remain unconvinced"
- Chris Mason - The Letting Partnership
Almost one in five landlords do not trust letting agents to handle rental income and tenancy deposits correctly, according to new research from The Letting Partnership.
The firm surveyed 890 landlords across England to gauge attitudes towards trust, compliance, and professional standards. It found that 19% of landlords lack confidence in their agent's handling of letting agent client money, a finding that points to a persistent trust gap despite the majority of landlords retaining confidence in their agent.
One factor behind that gap appears to be how compliance standards are communicated. While 66% of landlords said their letting agent is clear about its compliance credentials and professional standards, 34% disagreed. That means more than a third of landlords are left without a clear picture of how their agent operates.
Awareness of independent compliance reviews is even lower. Three-quarters of landlords (76%) had no idea that some letting agents voluntarily submit to independent reviews of their client accounting and operational processes, with just 24% aware that such reviews exist.
Yet when the concept was explained, the appetite for it was near-universal: 99% of landlords said an independently verified compliance review would increase their confidence in a letting agent.
"Trust is one of the most valuable assets any letting agent can have, particularly when landlords are entrusting them with rental income, tenancy deposits and increasingly complex compliance obligations," said Chris Mason, chief operating officer of The Letting Partnership.
"What our research shows is that whilst most landlords trust their letting agent, there is still a sizeable minority who remain unconvinced. More importantly, there appears to be a significant lack of awareness around the independent reviews and compliance standards that many agents already undertake to demonstrate they are operating above board.
"The fact that almost every landlord surveyed said an independently verified compliance review would increase their confidence demonstrates that transparency matters. It's not enough to be compliant; increasingly, landlords want evidence that the right controls, processes and safeguards are actually in place.
"For agents, that presents a real opportunity. Those who can clearly demonstrate how they manage client money, maintain compliance standards, and independently verify their processes will be best placed to build trust and differentiate themselves in an increasingly competitive market."
The findings suggest that while many landlords already have confidence in their agent, demand for greater transparency around client money handling and compliance verification is substantial. For letting agents looking to stand out, independent accreditation may increasingly become a differentiator rather than simply a point of good practice.
