It’s that time of year when I peer into the fog of our industry’s future and try to make sense of what lies ahead for 2026.

After a tough 2025 – one of the slowest markets we’ve seen for years, fuelled by economic uncertainty and a Government that seems more interested in taxing homeowners than encouraging them – many agents will be wondering if things will ever get better.

But, as ever, I believe challenge breeds opportunity. The year ahead won’t be smooth, but for those ready to evolve, it will be the year to pull ahead.

AI is here – and it’s not coming for your job

There’s been a lot of hype around artificial intelligence, with many wondering whether it will replace estate agents altogether. The simple answer is that it won’t. What AI will do is help good agents become great agents, giving them back time to focus on people rather than admin.

We’re already seeing how tools like ChatGPT are changing the way we communicate with clients and generate content. Geo-search is also improving how buyers find homes, while automation is transforming how we nurture leads. But AI will never replace local expertise, negotiation or the human element that is essential to our job.

The agents who thrive in 2026 will be those who embrace AI as a productivity multiplier, not a replacement, and use it to win more instructions and deliver better service. In Australia, agents using AI tools properly are earning far more than their UK counterparts.

Rightmove’s grip will loosen

For years, I’ve warned about portals having too much power and that Rightmove, in particular, has cared far more about its shareholders than its customers. With their move into the mortgage space, I can’t be the only one wondering whether they still see agents as partners or just data sources to monetise.

With CoStar planning massive investment in OnTheMarket, a portal which I helped get off the ground, I anticipate that Rightmove’s dominance will start to fade. We might not have seen a mass exodus of agents just yet but the cracks are showing.

Expect a shake-up in how agents use portals in 2026, with a greater mix of platforms, a renewed focus on direct-to-vendor marketing, investment in AI search and more agents demanding value for money.

Local marketing will win the race

If there’s one thing the past five years have proven, it’s that the agent who owns their patch wins.

2026 will be all about hyper-local strategy. Content that speaks directly to communities, data that shows you know your street, not just your city. The most successful agents will be those who show up where it matters – not with generic posts, but with meaningful updates, property insights and engagement that builds trust.

Those who master video marketing, daily AI-assisted updates and local SEO will leave the portals and pay-per-click giants in their wake.

Flat volumes mean consolidation is coming

We can’t escape the fact that housing transactions remain well below historic norms. The market may be more stable than in the chaos of 2023, but volumes are sluggish, and with no real incentive for buyers or sellers to move, this isn’t going to change quickly.

At the same time, the Government has consistently fallen short of its own new-build goals, with the housing shortage fuelling both price inflation and rental pressure, pushing more people into expensive, insecure rental arrangements and locking others out of homeownership altogether.

In this environment, scale without strategy is dangerous. We’re seeing brands like Connells / Countrywide pouring money into branch refurbishments while footfall drops, which can’t be a wise business decision.

The strong will continue to get stronger – but only if they adapt. Franchise models with strong lettings books will continue to tick over, but we will see a wave of mergers, closures and acquisitions. Consolidation is no longer a prediction – it’s a certainty.

Perhaps we should look to China, where one of the world’s largest estate agency models is thriving. Lianjia manages the entire property journey – from marketing and mortgages to renovation and furnishing – all under one roof. It’s a powerful example of what’s possible when agencies invest in full-service delivery, rather than trying to cut corners.

Is Purplebricks fast becoming a disappearing act?

Is Purplebricks – once the poster child for disruption – now rapidly fading into irrelevance? They started 2024 with a 1.74% market share and are now down to just 1.11% as of December 1st, 2025. At one point, they even fell to a record low of 0.88%.

This is a business that once promised it would claim 10% of the market! It’s a sharp reminder that scaling without service is never going to work. I have long questioned why investors would keep throwing good money after bad and, unless there’s a radical rethink, I can’t see this trajectory changing.

The lettings shake-up will change the game

Lettings has long been the safety net in quieter sales markets – but that safety net is about to be stretched.

With the Renters Reform Act taking shape, tenants will stay in properties longer, cutting into the number of move-ins and reducing potential revenue. For lettings agents, this is a moment of reckoning. Those who adapt by adding value, increasing fees and offering better landlord services will continue to thrive. Those relying on volume alone will be exposed.

I also expect to see more landlords leaving the market unless the Government steps in to make it viable again. We’re already seeing 12% annual rent rises in some areas and yet supply continues to fall. Something’s got to give. The smart agents in 2026 will focus on retention, compliance and premium service. The rest will be playing catch-up.

Licensing and training must finally take centre stage

I’ve said for years that estate agency should be a licensed profession. In 2026, that conversation needs to become action. We cannot expect public trust or attract high-quality talent unless we raise standards across the board.

That means better training, better onboarding and industry-wide commitment to professionalism. It’s time we stopped apologising for being estate agents and started holding ourselves to the same standards we expect in financial services or law. If we don’t, we shouldn’t be surprised when consumers look elsewhere – or when regulators step in.

So yes, the market is tough. But tough markets produce tough operators. 2026 will reward those who think long-term, who reinvest, who put customers first, and who embrace change.

Those clinging to old ways, waiting for the boom times to return, will be left behind. The road ahead won’t be smooth, but it’s not meant to be. Great businesses thrive on bumpy roads. That’s when the engine gets tested.

Paul Smith is the Founder and Chairman of Spicerhaart