Letting agents brace for 2026 crunch

Estate and letting agents are bracing for what many see as a defining year, with costs rising, regulation tightening and margins getting thinner, a survey reveals.

The findings from Alto show that nearly two-thirds of agents expect economic uncertainty to be their biggest challenge in the year ahead.

Its 2026 Agency Trends Report, based on responses from 250 estate and lettings professionals, points to rising operational costs and compliance demands for 60% of respondents.

Almost eight in 10 agents said the Renters’ Rights Act is the reform they fear most, while half pointed to EPC and energy-efficiency rules.

More than a third highlighted the spread of local landlord licensing schemes.

Worries over landlord losses

The chief executive of the sales and property management platform, Riccardo Iannucci-Dawson, said: “Agents are under siege from every direction, from inflation and insurance hikes to new laws and landlord losses.

“The Renters’ Rights Act is the most significant shake-up of the rental sector in a generation and will test many independents.”

Agents focus on survival

Smaller independent agents say they are concentrating on survival, mid-sized firms are wrestling with staff burnout and efficiency gaps, while larger groups face managing compliance across extensive portfolios.

Beyond regulation and costs, agents also worry about competition from online and hybrid firms, recruitment problems and anti-money laundering obligations among the issues likely to dominate 2026.

Despite the gloomy backdrop, the research suggests agents are not standing still.

Almost two-thirds said their main growth priority is improving efficiency through technology to cut admin, automating compliance and shoring up income as conditions tighten.