Let agents lose a quarter of their income when the law of tenants becomes rights, a new survey suggests.
In its annual poll of more than 2,750 agents, Lettings Management Platform Goodlord discovered that the reimbursements of rental extensions make up on average 27% of the profit of agencies.
The new rules for the rental market will be established to abolish rental options on a fixed period, which would put an end to these reimbursements.
Goodlord warns that the bill, which is planned to receive royal consent within a few weeks, means “an income crisis can be on the horizon for a large number of agencies”.
In its annual State of the Lettings industry, GoodLord has also found that the majority of the respondents do not feel prepared for the impact of the tenants’ bill.
Chief Executive William Reeve says: “This year’s survey is our largest so far.
“And the insights could not come to a more critical time.
“The sector is under enormous pressure on all fronts – tenants, landlords and agents feel the tension, with even more changes and uncertainty.
“This is a resilient sector that is used to interwoven storms, but the pressure seems to rise instead of taking.”
Further findings of the survey will be released next week.