A new report says letting agents will suffer from the Renters Rights Bill unless they prepare – a veridct that contrasts with a report issued earlier this week.
The latest study is by PropTech software firm Alto which says around one in three letting agents (34%) are reporting a surge in independent landlords selling up.
Of the 250 UK letting agents surveyed, no fewer than 93% said they were concerned about losing their independent landlord clients altogether. And 70% of agents said at least some of their landlords had already sold off properties in the past year.
Most of those quitting the market are smaller player landlords who own just one or two properties, often inherited or bought as retirement nest eggs.
“Independent landlords are the lifeblood of the sectors” says Riccardo Iannucci-Dawson, Alto’s chief executive. “If we lose them, tenants lose choice and stability – and we risk pushing rents even higher.”
Alto, which supports over 25,000 letting agents across the UK, is urging the government to offer clearer guidance, while the firm is itself beefing up progression tools to help secure more business.
“Letting agents are facing unprecedented pressure – from legislative upheaval to operational chaos” Iannucci-Dawson adds.
He claims that with thousands of landlords already heading for the exit, letting agents are increasingly being called on to not just market homes but manage reform.
However, the Alto report appears to conflict with a software firm called SME Professional, which says the experience of Scotland shows that fundamental changes like those in the Renters Rights Bill can be absorbed by agents in England too.
Scotland’s Private House (Tenancies) (Scotland) Act 2015 included the abolition of Section 21-style evictions, ended fixed term tenancies, strengthened grounds for possession and introduced mandator landlord registration mechanisms.
The report claims that letting agents in Scotland have not only adapted successfully to the reforms since they have been implemented from 2017 but, in many cases, have benefited from them.
SME Professional’s managing director, Fraser Sutherland, says: “The Scottish experience demonstrates that robust tenant protections need not harm the rental market or agency businesses.
“Our customers in England can be reassured that the upcoming reforms may not reduce business opportunities. While regional variations across the UK will no doubt exist – between different regions or between types of landlords – on the whole, Scotland’s experience suggests these changes could actually boost demand for professional services and foster a more stable, well-regulated rental market.”
SME adds that a recent survey shows over 60% of Scottish landlords reporting annual rent increases in 2024, representing a significant increase from just 8% in previous years, with a higher proportion of properties let at market rents. These trends have directly enhanced revenue for letting agents, the company claims.
Sutherland adds: “Fears that tighter regulation would lead to market contraction have not materialised. The private rented sector in Scotland expanded significantly following tenants’ rights reforms, with tenancy lengths increasing and landlord satisfaction remaining high. Far from triggering an exodus, the new rules have led to greater professionalism and tenant stability.”
