Letting agents are heading into 2026 fearing a make-or-break year, a new survey suggests.
They are worried about soaring costs, economic uncertainty and sweeping regulatory change, all squeezing already-tight margins.
That’s according to the newly released Alto 2026 Agency Trends Report from lettings CRM platform Alto.
It’s polled 250 lettings and estates professionals across the UK with 63% citing economic uncertainty as their biggest challenge.
Almost as many fear rising operational costs (60%) while compliance and regulation (60%) weigh heavily on the industry.
When asked which upcoming regulations worry them most, an overwhelming 79% named the Renters Rights Act.
Then comes EPC and energy-efficiency rules (50%) and local licensing schemes (36%).
“Agents are under siege from every direction, from inflation and insurance hikes to new laws and landlord losses” says Riccardo Iannucci-Dawson, CEO of Alto.
“The Renters’ Rights Bill is the most significant shake-up of the rental sector in a generation and will test many independents.
“We’re already building new tools that make compliance simple and seamless, from bulk conversion of fixed-term to periodic tenancies, to automated rent-review alerts and updated legal templates.
“Our goal is to take the admin and uncertainty out of reform so agents can stay compliant, protect income, and focus on delivering a great experience for landlords and tenants.”
The report paints a stark picture of an industry under pressure, with smaller independent agencies focused on staying afloat, mid-sized firms grappling with staff burnout and efficiency challenges, and larger groups wrestling with compliance at scale.
The top 10 challenges keeping agents awake at night in 2026
- Economic uncertainty
- Rising operational costs
- Compliance and regulation
- Lead generation and conversion
- Competition from online and hybrid agents
- Recruitment and retention
- Renters’ Rights Bill
- EPC and energy-efficiency standards
- Local licensing schemes
- Anti-Money Laundering (AML) compliance
Nearly two-thirds (63%) say their number-one growth strategy for 2026 is improving efficiency through technology, as agencies look to cut admin, automate compliance and protect revenue.
“The message from agents is clear: efficiency is survival,” Iannucci-Dawson adds.
“Agencies that automate and modernise – using AI to eliminate manual tasks and stop sales and lettings opportunities slipping through the cracks – can reduce risk, manage compliance more easily, and focus on what really matters: sales, growth and client service.
“These results show that those who embrace automation can turn compliance into a genuine competitive edge.”
The Alto 2026 Agency Trends Report explores how different agency types are preparing for the year ahead, the pressures reshaping the market, and where technology and automation could offer a competitive edge.
The full report is available to download for free.
