The majority of letting agents in England have experienced lost revenue from the tenant fees ban.
A survey of agents by letting platform Goodlord found that 59% of firms have seen a dip in annual revenue of up to 20% following the ban.
Some 31% of respondents said that their agencies had lost between 10-20% of their revenue as a result of the Tenant Fees Act, while 28% said their agencies had lost up to 10% of their revenue.
These figures align very closely with the market’s predictions from last summer when 31% of respondents said they expected to lose between 10-20% of their revenue, and 32% saying they expected to lose up to 10%.
Just 15% of survey respondents said that the Tenant Fees Act has had no impact on their revenues.
With a third - 35% - of agents admitting that they were worried about ongoing compliance with the Tenant Fees Act and the penalties for not doing so, many are likely to increase their rental stock or hike their management charges to make up for lost revenue from the tenant fees ban.
Tom Mundy, COO at Goodlord, said: “It’s clear that the Tenant Fees Act has had a significant impact on the industry.
“The majority of agents have seen revenues hit and a large slice of the market continues to worry about compliance.
“These figures show just how pivotal this legislation has been, with few emerging unaffected by the changes.”
The upcoming State of the Industry Report from Goodlord, which will be released in full on 10th February, will reveal the full impact of the Tenant Fees Act six months on.
Mundy added: “With further pieces of key regulation due in 2020 and beyond, it’s essential that agents stay nimble and prepare their business models for more change to ensure they continue to prosper this decade.”
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