Foxtons has taken a £3million hit from the Renters’ Rights Act as tenants rush to end their contracts.
The estate agent said it had seen an ‘elevated level of tenancy terminations’ during May and June, particularly among student renters.
The legislation, which came into force on 1 May, abolished fixed tenancy terms and prevents landlords from raising rent more than once a year.
It has shifted the balance of power away from landlords towards renters in the largest transformation to the private rental sector since the 1980s.
Foxtons said that while the short-term volatility had resulted in the reversal of approximately £3million of revenue due, it believes it could still create ‘growth opportunities over the medium term.’
