Dire warnings that many lettings agencies would struggle to make up the revenue lost following the tenant fees ban have turned out to be true, a shocking report has revealed.
This includes how nearly a third of agencies say they have lost between 10% and 20% of their revenue as a result of the fees ban, and that a further third have lost up to 10%.
Also, 17% of respondents in the survey by lettings platform Goodlord said they had lost between 21% and 30% of their turnover and 10% had lost more than 30%.
This leaves just 15% who have found new sources of revenue following the ban.
These figures largely echo research by Goodlord following the ban when agents were asked to calculate how the ban would pan out for their business.
Although industry discussions about the ban have died down recently, many agents say they are more worried about the challenges of complying with the fees ban they are with the arguably more complicated anti money laundering prevention rules.
“It’s clear that the Tenant Fees Act has had a significant impact on the industry,” says Tom Mundy, COO at Goodlord (left).
“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.
“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.”