Almost four in ten agents are expecting a drop in lettings revenue next year, Zoopla claims.
The figures come as agents face the prospect of the tenant fee ban being introduced during 2019.
Zoopla found that 38% of the 600 agents polled are anticipating a drop in lettings revenue, in part because of the fee ban but also over concerns about the number of rental properties coming to market.
Despite the concerns among agents, demand from tenants appears to be strong.
Zoopla’s State of the Property Nation report found that the number of tenants saying they are using letting agents to find a place to live has increased by 12 percentage points in the past year.
Almost half, 48% of tenants, used a letting agent to source accommodation this year, up from the 36% recorded in the 2017 edition of the report.
Of the 6,000 people surveyed for the report, 62% said they expect to rent for at least the next three years. Of these, 23% said they are likely to rent indefinitely.
Meanwhile, the proportion of home owners letting out properties rose from 2.4% in 2016 to 4.2% this year.
Charlie Bryant, managing director of Zoopla’s property division, said: “It’s certainly a challenging time for lettings agents with the ban on lettings fees looming. However, our research shows that demand for agents’ services and rented accommodation are strong, and that should come as a welcome boost.
“As the market becomes more regulated and complex, the lettings agents that adopt a more consultative approach with both their landlord and their tenant clients to help navigate them through will gain an advantage.”