The tenant fees ban will lead to a ‘seismic’ reduction in staffing levels among the 50,000 people employed by the industry, a leading recruitment company has claimed.
Staines-based Property Personnel currently offers nearly 300 jobs within the sector but says the ban will have serious consequences.
This will include lower staffing levels as the sector is “battered from all sides” by both the fees ban but also landlords exiting the market and the looming end to Section 21 ‘no fault’ evictions.
“It’s such a marginal industry – if companies are not earning enough money to pay their staff properly, employees are going to vote with their feet,” says its Managing Director Anthony Hesse.
“Within bigger chains, those carrying out tenancy progression will be on a flat salary. But in a small independent firm, that’s often not the case and a level of commission will be involved – which will now disappear altogether.
“Lettings agents are having part of their bottom line swiped away, despite the fact there is still administration that they will have to do. They are going to have to do more work for less income.”
Agents are having to think hard about whether to pass on the additional costs heaped on them by the tenant fees ban and several major brands have already announced how much more landlords will have to pay.
The most recent is Humberts, which has revealed that it will only be passing on the costs of referencing and end-of-tenancy check-outs to landlords, but not increasing its standard percentage-based fees.