Letting agents could face a major hit to their income as the Renters’ Rights Bill moves closer to abolishing fixed-term tenancies, according to early findings from a new industry report.
A survey of more than 2,750 letting agents, landlords, and tenants reveals that 27% of agency revenue currently comes from tenancy renewals – a revenue stream likely to be significantly reduced under the new legislation. In London, agents report renewals account for 37% of income.
The findings, released ahead of the full State of the Lettings Industry 2025 report by Goodlord, suggest a potential financial reckoning for many agencies. The report also highlights concerns around preparedness, with most agents admitting they are not ready for the upcoming changes.
Smaller agencies are the least prepared: just 4% of sole operators say they feel “very prepared” for the Renters’ Rights Bill. Among agencies with 2–10 staff, only 26% say they are ready, while that figure rises to 47% for larger agencies with 11 or more employees.
Adapting to revenue pressure
In response to expected revenue disruption, 70% of agents say attracting new landlords is a key priority for the year ahead, while 61% are focused on finding new revenue streams. Just 19% of agencies plan to expand their teams over the next 12 months.
Over a third (39%) are also targeting higher management fees as a way to offset potential income loss.
Landlord concerns over EPC upgrades
Separate findings from the report show ongoing concern among landlords around proposed energy efficiency rules. A majority (63%) view the push for properties to meet EPC Band C standards negatively, citing cost as a key barrier.
Nearly half (45%) say they would spend no more than £2,000 per property, while just 19% are willing to invest over £5,000—well below the proposed £15,000 cap. With the 2028 deadline looming, 39% of landlords say they would consider selling rather than upgrading.
The full report will be published on 7 October, with additional insights on landlord retention, rental pricing trends, tenant arrears, and the use of AI in the lettings sector.
William Reeve, CEO at Goodlord, commented: “This year’s State of the Lettings Industry report is our largest yet. And the insights could not come at a more critical time. As the full report will reveal next week, the sector is under huge pressure on all fronts – tenants, landlords and agents alike are feeling the strain, with more changes and uncertainty still to come.
“This is a resilient sector that’s used to weathering storms, but the pressure seems to be increasing rather than abating. We hope these insights and full report shine a light on these areas and help decision makers take the necessary steps to ensure the PRS remains healthy, thriving and supported.”
