Letting agencies could lose up to a quarter of their revenue when fixed-term tenancies are abolished under the Renters’ Rights Bill (RRB), according to early findings from Goodlord’s upcoming State of the Lettings Industry report.
The annual survey, now in its eighth year, collates insights from 2,750 letting agents, landlords and tenants – making it the largest report of its kind. The full findings will be published next Tuesday (7th October), but early data suggests the sector faces a period of major financial and operational disruption.
One of the starkest warnings relates to tenancy renewals, which currently account for 27% of agency income on average, rising to 37% in London. With the RRB set to end fixed-term contracts, renewals will disappear, leaving agents scrambling to replace a vital revenue stream.
Preparedness for the reforms also remains low. Just 4% of sole-operator agencies describe themselves as “very prepared” for the incoming changes, while fewer than half (47%) of larger firms with 11 or more staff say they are ready.
At the same time, landlords remain resistant to government proposals on energy efficiency. Nearly two-thirds (63%) view the planned EPC Band C target negatively, with many unwilling to shoulder the costs of compliance. Almost half (45%) said they would invest no more than £2,000 per property, and just 19% were prepared to spend over £5,000 – well below the proposed £15,000 cap. Alarmingly, 39% of landlords said they would prefer to sell rather than upgrade properties to meet the 2028 deadline.
The survey also revealed shifting priorities within the industry. With more landlords considering an exit, 70% of agents said winning new landlords was their top focus, while 61% highlighted the need to generate fresh revenue streams. Yet despite these ambitions, only 19% of agencies expect to grow their teams in the coming year.
William Reeve, CEO at Goodlord, said: ‘This year’s State of the Lettings Industry report is our largest yet. And the insights could not come at a more critical time. 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.’
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