Letting agents stand to lose a quarter of their income when the Renters’ Rights Bill turns into regulation, a new survey suggests.
In its annual ballot of greater than 2,750 agents, lettings administration platform Goodlord discovered that on common, charges from tenancy renewals make up 27% of company earnings.
The new rules governing the rental market are set to abolish fixed-term tenancies, which might put an finish to those charges.
Goodlord warns the Bill, which is scheduled to obtain Royal Assent in a matter of weeks, means “a income disaster could be on the horizon for a big quantity of businesses”.
In its annual State of the Lettings Industry report Goodlord additionally discovered that almost all of respondents don’t really feel ready for the affect of the Renters’ Rights Bill.
Chief govt William Reeve says: “This yr’s survey is our largest but.
“And the insights could not come at a extra essential time.
“The sector is under large strain on all fronts – tenants, landlords and agents alike are feeling the pressure, with extra adjustments and uncertainty nonetheless to come back.
“This is a resilient sector that’s used to weathering storms, however the strain appears to be rising somewhat than abating.”
Further findings from the survey will likely be launched subsequent week.
