A quarter of landlords would look to cut out letting agents to reduce the ever-rising taxes and running costs of their buy-to-let portfolio, new research claims.

A survey by Kent Reliance found that the average landlord now spends £3,571 per property on annual running costs, before tax or mortgage interest.

Landlords spent most on property maintenance at £1,086, followed by letting agents’ fees at £935. Landlords said they would review all their costs, with some hoping to achieve savings of 30%.

The report warns that lettings charges could increase further once the tenant fee ban is introduced in June, adding that this may result in landlords either shopping around or self-managing.

It stated: “Rather than see revenues fall, many letting agents may pass the costs on to landlords, who in turn will seek to recover their higher outlay from tenants in the form of higher rents where demand allows. It’s unlikely to make renting more affordable, simply turning an upfront cost into a higher ongoing monthly cost for many tenants.”

Almost half (46%) of landlords said they would reduce the amount they spend on property upkeep and maintenance to manage their costs, while one in five said they planned to increase rents.