Foxtons has lost £3m in expected revenues after a surge of students terminated their fixed-term tenancies, a direct consequence of the new Renters’ Rights Act. The estate agency chain reported the end of such tenancies knocked off the sum from its books, as the legislation appears to have encouraged tenants to exit contracts early.
The Renters’ Rights Act, which came into force recently, has prompted a rush among students to end their leases, according to Foxtons. The company’s announcement highlights the immediate financial impact of the law, which was designed to give renters greater flexibility but has created a sudden revenue shortfall for one of London’s biggest lettings agents.
“Foxtons lost £3m in revenue after the Renters’ Rights Act sparked a wave of student contract terminations.”
Foxtons, known for its prominent high-street branches and wide portfolio, said the elevated levels of contract terminations directly reduced its income. The £3m loss reflects the scale of the exodus, which appears to have been particularly pronounced among student tenants, a key demographic in many urban rental markets.
The development underscores a tension in the rental sector: while the act aims to empower tenants, landlords and agents face disruption as fixed-term agreements unravel. For Foxtons, the immediate consequence is a dent in earnings, and the company will be watching closely to see if the trend persists or stabilises as the market adjusts to the new rules.