Not just landlords being forced out by reforms
Renters Rights Bill is not only affecting landlords but also small independent lettings agencies. Due to a reduction in landlord clients, these agencies are seeking details on how to sell or be taken over by corporate firms.
Key points:
- Impact on Lettings Agencies: Spicerhaart reports a surge in small independent agencies looking to sell or be acquired due to the legislation.
- Challenges: Smaller agencies may struggle to manage the operational, legal, and financial implications of the Renters Rights Bill, even if the Section 21 ban is postponed.
- Financial Pressure: The uncertainty surrounding eviction processes and rent controls could lead to an exodus of landlords, reducing revenue streams for smaller agencies.
- Government Impact Assessment: The Bill could cost lettings agencies £391.7 million over the next decade.
- Agency Owners’ Concerns: Many independent agencies are operating on tight margins and face real challenges due to the financial pressure and reduced number of landlord clients.
Joel Osbourne of Spicerhaart notes that the financial pressure is mounting, and many business owners are proactively exploring their options as landlords reassess their portfolios.
