A prominent housing market analyst says the Renters Rights Bill could be an opportunity for letting agents to grow business.

Richard Donnell, executive director of Zoopla and a long-standing market expert, says across the entire agency industry annual revenues are almost £10 billion a year with a 50:50 split between lettings/management, and sales. 

“The revenue bias to lettings is higher in London, closer to 70:30 given the size of the rental market and level of rents” he says.

Donnell claims that income for lettings agents will have risen in recent years as rents have increased – up a third over the last five years and much higher in some markets with an underlying trend of rises between two and four per cent annually.

The Zoopla executive suggests the current proportion of landlords who use agents – about 50% – may rise as tighter regulations kick in across Scotland and Wales, and particularly the Renters Rights Bill becoming law in England this summer. 

“The potential to grow income is even greater with the right marketing tactics” says Donnell is his article on the Property Industry Eye blog.

And he suggests that as ‘amateur’ landlords exit the sector – either because they retire or because buy to let becomes unprofitable – so more professional business-focused landlords may step in.

He concludes: “Whatever the strategy, landlords will want to buy homes that will be lower cost to manage and run, with a close eye on the likelihood of higher EPC ratings for rented homes being required from 2028.

“Growing a base of landlords that prioritise the cashflow over the long run is the optimal route to growing a strong lettings and management book.”