The Fixflo Report is always insightful, regardless of whether the information it reveals is expected or unexpected. When you survey over 400 people, the results clearly have the potential to be eye-opening, and that was certainly the case here. While we certainly had things that we wanted to find out about, some of the answers came as a genuine surprise and gave us a lot of food for thought here at Fixflo. Hopefully they’ll do the same for you as well!
We won’t tell you everything the Report says here, but a couple of the highlights are below.
The Tenant Fees Bill
Agencies have had a long time to get to grips with the probable effect of the Tenant Fees Bill on their portfolios and revenue streams, and it now seems that most of them have a good idea of the way their businesses will be affected. When polled as part of the Report, almost 70% of them said they estimated they would lose up to 20% of their annual revenue when the Bill is passed. This isn’t as bad as it was estimated when the Bill was first announced, with many agencies saying they could lose up to 70% of their revenue, but 20% is still a significant amount of revenue that will have to be made up in other ways.
The lettings industry
It’s no secret that the lettings industry as a whole has seen a lot of upheaval over the last year or so, with legislation, new tech and new market entrants affecting agencies’ abilities to make a mark (or continue making a mark) in the same ways they had previously been able to do. The result of this upheaval is that, having considered the way the industry has developed, nearly half of all agencies are considering whether they have the desire to continue to trade.
This is a fairly staggering number - for half of the lettings industry to be considering whether they really want to carry on anymore is a grave situation to be in. While it would be quite a stretch to suggest that fully half the industry will actually shut up shop, the pessimism around the sector is quite something, and it will be up to businesses to raise their game in the next year to ensure that the developments throughout the industry don’t affect them in the way they’re predicting.
To read the full Report, which includes even more insight, click here.