The parent company of Martin & Co and Ewemove has revealed that the group has managed to recoup the revenue it had expected to lose following the tenant fees ban.
The Property Franchise Group (TPFG) had originally told investors that it would take until the middle of 2020 to mitigate the effects of the ban. TPFG says revenue from lettings reached a record £5.96 million last month despite fees charged to tenants having previously represented 16% of lettings turnover.
This is somewhat less than the industry average; a report by Fixflo released on Monday revealed that on average a fifth of estate agents have lost more than 20% of their income following the ban and that only 2% had managed to maintain revenue levels.
TPFG has hung its success on the cost savings of its franchise model, an increase in tenant demand and, most importantly, raising fees to its landlords by 10% to £4.28m in October from £3.88m in October last year.
“We are delighted that the mitigating actions we’ve recommended to our franchisees have taken effect as hoped and at a good pace,” says TPFG CEO Ian Wilson.
“We now expect to achieve full mitigation of the impact of the tenant fee ban a full six months earlier than originally hoped.
“At a challenging time for the industry, where many independent lettings agencies are considering leaving the sector, our Group continues to show its strength.”
TPFG says the recovery in lettings revenue across the business comes at a good time; in its trading update to the City this morning it has also warned that the sales market continues to ‘soften’.