The latest data and analysis from Fixflo reveals that in spite of revenue loss affecting almost every letting agent, many are more optimistic about the future compared to the year before.
The Report which was supported by The Property Ombudsman and 20+ industry bodies and software providers including ARLA Propertymark, mydeposits, Tenancy Deposit Scheme (TDS), Deposit Protection Service (DPS), Property Redress Scheme, Landlord Law Services and MRI Software surveyed 443 letting agents and 223 landlords. 523 tenants were polled by YouGov as part of this research.
The vast majority of agents in England have experienced a loss in revenue due to the tenant fees ban with almost 20% seeing a reduction of 20% or more in revenue because of the ban. Only 2% said that they survived the ban without any loss in revenue. Despite the tougher economic environment, many remain optimistic. Compared to 2018 figures, agents surveyed are 20% more confident about their trading environment this year.
Unsurprisingly, the reduction in tax relief for residential landlords and the impending abolition of section 21 are worrying landlords with 27% of landlords planning to sell at least some of their rental properties. Responses from letting agents who took part in the research resonated with this finding. Almost three-quarters reported that “landlords selling their properties” was the main reason they lose clients rather than any perceived shortfall in services. This is perhaps expected as 89% of landlords have found it harder to be a landlord over the past year.
In its sixth year, Fixflo’s “state of the sector” report provides letting agents with insights to benchmark their business against the rest of the wider market. The research also looks at the regulation of property agents, the sector’s awareness of key housing legislation and regulations, tenants’ and landlords’ perceptions of agents and of renting.
To read the full report click here