LONDON (Alliance News) - Belvoir Lettings PLC on Thursday said the ban on letting agent fees for tenants, announced in Wednesday's Autumn Statement, is expected to impact its total gross profit by less than 8.0%.
Property franchise group Belvoir said it "cannot fully predict" the likely financial impact of the UK government policy change on its results for the year to end December, 2017 and beyond.
"Based on the group's experience following a similar decision in Scotland in 2012, however, the board anticipates that mitigating action should be possible over time and indeed it should be noted that no franchisees were lost in Scotland as a consequence," Belvoir said.
Belvoir noted that less than 10% of the income derived by its franchisees is from fees to tenants, with the impact on the group's gross profit likely to be below 8.0% due to its broader revenue streams.
The group noted the impact may "well be far greater" for many independent letting agents.
Belvoir said it will review and assess the likely impact, though noting there will be a consultation process prior to implementation and the precise timing of the government change is uncertain.
Shares in Belvoir were down 10% at 108.00 pence on Thursday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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