UK estate and letting agents are heading into 2026 fearing a make-or-break year, as soaring costs, economic uncertainty and sweeping regulatory change threaten to squeeze already-tight margins, according to Alto’s boss Riccardo Iannucci-Dawson (pictured).
A survey of 250 UK estate and letting agents in the CRM provider’s Agency Trends Report reveals that economic uncertainty is the single biggest concern for the year ahead. Almost two-thirds (63%) say it will be their biggest challenge in 2026, while 60% cite rising operational costs and compliance pressures as major worries.
Regulatory change is another key concern. More than three-quarters of agents (79%) rank the Renters’ Rights Bill as the “most significant”. EPC and wider energy-efficiency requirements are next at 50%, followed by local authority licensing schemes at 36%.
Agents are under siege from every direction, from inflation and insurance hikes to new laws and landlord losses.”
Iannucci-Dawson says, “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.”
Staying afloat
The report shows those pressures are being felt right across the sector, with smaller independent agencies focused on staying afloat in 2026, mid-sized firms dealing with staff burnout and efficiency challenges, and larger groups managing compliance across larger portfolios.
Despite these challenges, many agents are focused on improving how they operate in the year ahead. 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.
According to Iannucci-Dawson, “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.”
The full report can be read here.
The post Estate agents warn of ‘survival year’ ahead appeared first on The Negotiator.
