Let-only agencies will be concerned about potentially losing income because of the Renter’s Reform Bill
The recent Renters Reform Bill has been a major cause of concern for letting agents across the country. According to a recent analysis, the bill could cause them to lose millions of pounds in revenue.
The bill was introduced in April 2021 and is designed to protect renters from unfair practices by landlords and letting agents. It includes measures such as capping rent increases, banning tenant fees, and introducing a new national database of rental properties.
The analysis, conducted by the Centre for Economics and Business Research (CEBR), found that the bill could cost the UK’s letting agents up to £2.5 billion in lost revenue over the next five years. This is due to the fact that the bill will reduce the amount of money they can charge for services such as tenant referencing and inventory checks.
The CEBR also found that the bill could lead to a reduction in the number of rental properties available, as landlords may be less willing to rent out their properties if they cannot make a profit. This could have a significant impact on the UK’s rental market, as it could lead to an increase in rents and a decrease in the availability of rental properties.
The analysis also revealed that the bill could lead to job losses in the letting agent sector, as agents may have to reduce their staff numbers in order to remain profitable. This could have a knock-on effect on the wider economy, as it could lead to a decrease in consumer spending and an increase in unemployment.
The findings of the analysis are concerning for both landlords and letting agents. While it is important to protect renters from unfair practices, it is also important to ensure that landlords and agents are able to make a profit from renting out their properties.
It is clear that the Renters Reform Bill will have a significant impact on the UK’s rental market. It is therefore important that both landlords and agents are given adequate support to help them adjust to the changes. This could include measures such as tax breaks or grants to help them cover the costs of implementing the new regulations.
Overall, the Renters Reform Bill has the potential to cause letting agents to lose millions of pounds in revenue. It is therefore important that both landlords and agents are given adequate support to help them adjust to the changes.