"This is a resilient sector that’s used to weathering storms, but the pressure seems to be increasing rather than abating."
- William Reeve - Goodlord
Early findings from the 8th annual State of the Lettings Industry report suggest that the Renters’ Rights Bill (RRB) could sharply reduce agency revenues and leave many operators unprepared for the scale of upcoming reforms.
The study, published by Goodlord, brings together the views of 2,750 letting agents, landlords and tenants. This year’s edition is the largest survey to date and will be released in full on 7 October. It will cover a wide range of topics, including landlord exits, tenant arrears, planned rental increases and the use of artificial intelligence in the private rented sector.
Agencies unprepared for Renters’ Rights Bill
Despite the Bill being weeks away from receiving Royal Assent, the survey reveals that most letting agents do not feel ready for the changes. Sole operators appear the least prepared, with just 4% saying they are “very prepared”. Among agencies with two to ten staff members, only around a quarter feel confident about the legislation. Even within larger businesses of eleven or more staff, fewer than half (47%) describe themselves as ready.
End of fixed-term tenancies threatens revenues
The research also highlights concerns that abolishing fixed-term tenancies could significantly erode income. On average, 27% of agents’ revenue comes from renewals, a figure that rises to 37% in London. With the Bill introducing periodic tenancies, many agents fear a gap in income that could force them to rethink business models.
Key priorities for agents
The survey identifies three central areas of focus for agencies:
70% of respondents say attracting new landlords is a priority
61% are looking for new revenue streams
39% are aiming to increase management fees
Despite these ambitions, only 19% of agencies plan to expand their teams in the coming year.
Ongoing pushback on EPC reforms
Energy efficiency requirements also remain a contentious issue for landlords. A majority (63%) view the proposed EPC Band C target negatively, raising concerns about affordability and feasibility. Almost half (45%) say they would spend no more than £2,000 per property, while just 19% are prepared to invest more than £5,000. This falls well short of the government’s proposed £15,000 cap. Looking ahead to the 2028 deadline, 39% of landlords say they would rather sell their properties than carry out the required upgrades.
“This year’s State of the Lettings Industry report is our largest yet. And the insights could not come at a more critical time,” said William Reeve, CEO at Goodlord. “As the full report will reveal next week, the sector is under huge pressure on all fronts - tenants, landlords and agents alike are feeling the strain, with more changes and uncertainty still to come. This is a resilient sector that’s used to weathering storms, but the pressure seems to be increasing rather than abating. We hope these insights and full report shine a light on these areas and help decision makers take the necessary steps to ensure the PRS remains healthy, thriving and supported.”
