Agents warn of ‘survival year’ as costs and reform pile pressure on sector

Agents are worried about soaring costs, economic uncertainty and sweeping regulatory change in 2026, the Alto Agency Trends Report has revealed.

When asked which upcoming regulations worry them most, 79% of agents named the Renters’ Rights Bill, followed by EPC and energy-efficiency rules (50%) and local licensing schemes (36%).

Nearly two-thirds (63%) of agents say economic uncertainty will be their biggest challenge next year, while rising operational costs (60%) and compliance and regulation (60%) are also weighing heavily on the industry.

Riccardo Iannucci-Dawson, chief executive of Alto, said: “Agents are under siege from every direction, from inflation and insurance hikes to new laws and landlord losses.

“The Renters’ Rights Bill is the most significant shake-up of the rental sector in a generation and will test many independents.

“The message from agents is clear: efficiency is survival.

“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.”