Response to the Autumn Statement

RNS Number : 0013Q

Belvoir Lettings PLC

24 November 2016

 

24 November 2016

Belvoir Lettings PLC

Response to the Autumn Statement

Belvoir Lettings PLC (AIM: BLV), the UK's largest property franchise, notes the comments made in the Autumn Statement, that lettings agents in England will no longer be allowed to charge fees to tenants. Although no timetable was given, there is to be a consultation process prior to implementation and therefore the precise timing is uncertain.

At this stage, Belvoir cannot fully predict the likely financial impact on the results for the year ended 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.

The Board believes that less than 10% of the income derived by franchisees is from fees to tenants and, due to the broader revenue streams to the Group, the impact on total Group gross profit is anticipated to be less than 8%.  The impact may well be far greater for many of the large number of independent letting agents. 

The Board will review and assess the likely impact of these proposed measures and will provide further updates in due course.

For further details:

Belvoir Lettings PLC Mike Goddard, Chairman and CEO Louise George, Chief Financial Officer	01476 584900 [e-mail]
Cantor Fitzgerald Europe Rick Thompson, Phil Davies, David Foreman, Michael Reynolds Corporate Finance	0207 894 7000
Mark Westcott, David Banks Sales
Buchanan Charles Ryland, Vicky Hayns, Madeleine Seacombe	0207 466 5000

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

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