
The Property Franchise Group (TPFG) predicts that the Renters’ Rights Act will drive higher landlord costs, which will be passed on to tenants.
In a trading update, the owner of well-known brands including Belvoir, EweMove and Fine & Country, announced that revenues in H2 to 31st October grew by 11% year-on-year, partly supported by its Privilege programme (a set of lettings-focused initiatives to support landlords and tenants), and strong mortgage and sales transactions - despite speculation around potential changes to stamp duty.
While the increased property taxes on landlords in the government’s Budget were disappointing, the firm believes this will have limited impact on the business going forward but says the changes are likely to drive further rental inflation as landlords pass these costs on to tenants.
Chancellor Rachel Reeves announced a property basic rate at 22%, higher rate at 42% and additional rate at 47% from April 2027, which the government estimates will impact 2.4 million landlords by 2029/30.
With implementation of the Act now confirmed for 1st May, TPFG says this crystallises the importance of its Privilege programme which is designed to protect franchisees and landlords from the potential impacts of the legislation, while also generating an additional income stream for the group.
CEO Gareth Samples (pictured) says it continues to leverage its enlarged scale to capitalise on additional income opportunities and provide increased value. “The uptake of our Privilege programme has been pleasing and is delivering tangible benefits, mitigating the impact of the Renters’ Rights Act,” he adds. “Underpinned by a strong franchise model and diversified revenue streams, we have seen strong momentum and significant organic growth in trading to the end of October resulting in our expectations for the full year profitability to be at least in line with market expectations.”
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