"Letting agents are navigating a significant shift in the market, and it's forcing agencies to rethink how they grow and operate"
- Ben Ridgway - iamproperty
Letting agents are overhauling their business models as landlords leave the private rental sector in growing numbers, according to new research from property technology platform iamproperty.
The findings, drawn from more than 320 estate agents, 350 consumers and in-depth interviews with agency leaders across the UK, paint a stark picture of a market in transition. Many agents anticipate a 71% reduction in buy-to-let investors in 2026, shrinking the pool of rental stock and piling pressure on letting businesses to adapt.
Published in iamproperty's new report, The real eSTATE of it, the data captures a sector caught between competing pressures. Agents describe a "double-edged sword": rising rental income on one side, declining stock levels on the other, making portfolio growth increasingly difficult.
"It's two steps forward, one step back," one contributor said. "Rents rise, but stock just isn't there."
The landlord exodus is changing how agencies operate day to day. Many are reducing their reliance on investor-driven volume and shifting focus toward owner-occupiers and needs-based movers, while reassessing staffing structures and future skills requirements in the process.
"We're changing everything about our strategy for 2026," another agent explained, "and a big part of that is the shift in who our customer actually is — less landlord and rental and more owners."
Regulatory uncertainty is compounding the pressure. Only 26% of agents feel optimistic about the current regulatory environment, despite broad support for higher consumer standards across the industry. Much of the frustration centres on the Renters' Rights legislation, with agents reporting that many landlords are choosing to sell ahead of the new rules taking effect.
"We're certainly seeing a lot of landlords selling up ahead of the incoming Renters' Rights legislation and we totally get it," one contributor noted.
Beyond the drop in investor activity, the changing customer mix is reshaping what clients expect from their agents. Greater emphasis on guidance, reassurance and hands-on support throughout transactions is becoming the norm, pushing lettings businesses to revisit growth strategies and diversify revenue streams as traditional landlord-led portfolio expansion grows less dependable.
"Letting agents are navigating a significant shift in the market, and it's forcing agencies to rethink how they grow and operate," said Ben Ridgway, co-founder at iamproperty. "At the same time, agents are adapting quickly, with many telling us they are changing their strategies, reviewing their customer focus and preparing for a different mix of business. This report gives letting agents a clear view of how their peers are responding and where the market is heading."
