Renters Rights Legislation changes the game for agents

Recent insights from our flagship report, The real eSTATE of it, revealed that letting agents are being forced to rethink their business models, with landlords exiting the private rental sector in growing numbers.

Agents reported a sharp landlord exit, with many anticipating a potential 71% reduction in buy-to-let investors in 2026¹, creating a shrinking pool of rental stock and placing increased pressure on letting businesses to adapt their strategies, services and skills.

Fewer landlords are entering the market, and more are selling up, creating what letting agents have reported as a “double-edged sword” – rising rental income alongside declining stock levels, making it harder to grow portfolios. One contributor to the report said: “It’s two steps forward, one step back. Rents rise, but stock just isn’t there.”

The shift is fundamentally changing how letting agents operate. Agencies are reducing reliance on investor-driven volume and spending more time supporting owner-occupiers and needs-based movers, while reviewing staffing structures and future skills requirements. Another agent explained: “We’re changing everything about our strategy for 2026 and a big part of that is the shift in who our customer actually is – less landlord and rental and more owners.”

This strategy change is also being informed by industry-wide changes. Agents linked the landlord exit to regulatory changes and uncertainty surrounding the Renters’ Rights legislation, with many reporting that landlords are choosing to sell ahead of new rules coming in. “We’re certainly seeing a lot of landlords selling up ahead of the incoming Renters’ Rights legislation and we totally get it,” one contributor noted.

Alongside the reduction in investor activity, letting agents reported that the changing customer mix places greater emphasis on guidance, reassurance and hands-on support throughout transactions. The report highlights that this shift is pushing lettings agencies to evolve business plans, reassess growth strategies and diversify revenue streams as traditional landlord-led portfolio expansion becomes less reliable.

Ben Ridgway, Co-Founder at iamproperty, said: “Letting Agents are navigating a significant shift in the market and it’s forcing agencies to rethink how they grow and operate.”

“At the same time, agents are adapting quickly, with many telling us they are changing their strategies, reviewing their customer focus and preparing for a different mix of business. This report gives letting agents a clear view of how their peers are responding and where the market is heading.”

To explore the full findings from The real eSTATE of it, download the report here.

¹The real eSTATE of it is a nationwide survey of 322 agents and 350 consumers carried out by MMC research on behalf of iamproperty between December 2025 – January 2026