The Property Franchise Group (TPFG) has labelled the latest landlord taxes in the Budget as “disappointing” but suggested they could mean higher rents.
A trading update from the estate agency brand suggested the higher taxes on property income will have a “limited impact on the business” but warned the changes are likely to drive further rental inflation as landlords pass these costs on to tenants.
The update said group revenues in the second half of its financial year to 31 October grew by 11% annually, supported by our progress on our strategic projects, the Privilege programme (a set of lettings focused initiatives to support landlords and tenants), and strong mortgage and sales transactions.
TPFG said current trading remains strong, with an operational focus on continuing the rollout of the Privilege programme across the group.
With the Renters Rights Bill now confirmed for the 1 May 2026, TPFG said this crystallises the importance of the Privilege programme which is designed to “protect our franchisees and landlords from the potential impacts of the legislation, whilst also generating an additional income stream for the group.”
TPFG anticipates that its full-year adjusted profit before tax will be at least in line with market expectations of £30m.
Gareth Samples, chief executive of TPFG, said: “We are continuing to leverage the enlarged scale of the group to capitalise upon additional income opportunities and provide increased value to our franchisees and members. The uptake of our Privilege programme has been pleasing and is delivering tangible benefits, mitigating the impact of Renters Rights Bill.
“Underpinned by a strong franchise model and diversified revenue streams, we have seen strong momentum and significant organic growth in trading to the end of October resulting in our expectations for the full year profitability to be at least in line with market expectations.”
