Foxtons Share Price Crash

Major letting agents including Foxtons and Countrywide saw sharp falls in the value of their shares in response to the Chancellors announcement that legislation is to be created to make it illegal for letting agents to charge fees to tenants.

However, one agent has reported their best day ever for new landlord enquiries!

Chris Sheldon. Managing Director of LettingSupermarket.com said ….

“It was only a matter of time before the legislation introduced in Scotland would filter into the rest of the UK so our business model was already prepared and ready for implementation. Our new fee scale to landlords will continue to be the most competitive in the Country offering full management for just 5% of rent (6% for properties inside the M25) and letting fees of just £100 per new tenant (£150 inside the M25). We will not charge for renewing tenancies for existing tenants. We anticipate a substantial increase in business as many landlords will be looking to reduce costs to in order to compensate for continually squeezed profitability, not only as a result of this announcement but also the tax changes announced over the last 18 months to mortgage interest relief and additional stamp duty.”