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Tenant Fees Act hits agency revenues

Letting agents have lost money due to the Tenant Fees Act of June 2019, research from lettings platform Goodlord has found.

A third (31%) of letting agents said their agencies have lost between 10-20% of their revenue, while 28% said their agencies had lost up to 10% of their revenue.

Some say the impact has been more extreme however, as 17% reported their companies losing between 21-30% in revenue, while 10% said they had lost more than 30%.

The Tenant Fees Act stopped agencies from charging tenants for things like referencing, inventories, credit checks and right to rent checks.

Tom Mundy, chief operating officer 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.

“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.”

Only 15% of said that the act has had no impact on their revenues.