Letting agents could face a major hit to their income as the Renters’ Rights Bill moves closer to abolishing fixed-term tenancies, according to early findings from a new industry report.
A survey of more than 2,750 letting agents, landlords, and tenants reveals that 27% of agency revenue currently comes from tenancy renewals – a revenue stream likely to be significantly reduced under the new legislation. In London, agents report renewals account for 37% of income.
The findings, released ahead of the full State of the Lettings Industry 2025 report by Goodlord, suggest a potential financial reckoning for many agencies. The report also highlights concerns around preparedness, with most agents admitting they are not ready for the upcoming changes.
Smaller agencies are the least prepared: just 4% of sole operators say they feel “very prepared” for the Renters’ Rights Bill. Among agencies with 2–10 staff, only 26% say they are ready, while that figure rises to 47% for larger agencies with 11 or more employees.
Adapting to revenue pressure
In response to expected revenue disruption, 70% of agents say attracting new landlords is a key priority for the year ahead, while 61% are focused on finding new revenue streams. Just 19% of agencies plan to expand their teams over the next 12 months.
Over a third (39%) are also targeting higher management fees as a way to offset potential income loss.
Landlord concerns over EPC upgrades
Separate findings from the report show ongoing concern among landlords around proposed energy efficiency rules. A majority (63%) view the push for properties to meet EPC Band C standards negatively, citing cost as a key barrier.
Nearly half (45%) say they would spend no more than £2,000 per property, while just 19% are willing to invest over £5,000—well below the proposed £15,000 cap. With the 2028 deadline looming, 39% of landlords say they would consider selling rather than upgrading.
The full report will be published on 7 October, with additional insights on landlord retention, rental pricing trends, tenant arrears, and the use of AI in the lettings sector.
William Reeve, CEO at Goodlord, commented: “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.”
The smaller agencies that jumped on the rental boom bandwagon are disappearing from the market at an alarming rate. More legislation in the sector will just hammer down the final nail in the coffin for them. The big agencies like Dexters, Foxtons and just a few other names will mop up the excess having in-house legal teams to guide both landlords and tenants. And for those landlords whom have been abusing the UK rental market, your days are numbered !!!
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I’ve just checked the company’s performance on the Companies house website as they seem to be telling the market that they are well clued up ahead of everyone else:-
2023 – £8.2m Loss
2024 – £1.2m Loss
Oh dear !
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The landlords who exploit the UK rental market will likely continue doing so—and may even benefit further. These are the ones who ignore regulations altogether, with no regard for rules, including the RRB. As more responsible landlords sell up, desperate tenants will increasingly be driven toward non-compliant landlords.
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The legislation may be tightening, but let’s be honest—it’s not the end of the road for lettings, just the end of the road for those who were never built to last.
The so-called “in-house legal teams” at the big corporates are often little more than underpaid, poorly informed admin staff playing at compliance. They’re not qualified counsel, and they’re certainly not offering landlords the kind of strategic guidance this new landscape demands.
Meanwhile, landlords are being bounced around call centres, speaking to people on minimum wage with no local knowledge and no skin in the game. It’s no wonder so many are returning to independent agencies—the ones who’ve been doing this for over a century, not just since the rental boom.
For those of us who’ve weathered every market cycle, this isn’t a threat—it’s a realignment. And it’s one that puts service, experience, and accountability back where they belong: at the heart of the landlord-agent relationship.
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As far as EPC ‘s are concerned landlords have spent thousands and only gained an E or D. There is absolutely no guarantee.
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