What happens after the Renters Rights Bill becomes law?
A shocking new report reveals a widespread state of unpreparedness across the lettings sector just as the landmark Renters’ Rights Bill is set to become law. The data suggests a financial crisis is looming, with many agencies set to lose over a quarter of their income.
The message is clear: the most resilient lettings agents will be the most informed.
The Looming Revenue Void: Fixed Terms and Renewal Fees
Goodlord’s latest State of the Lettings Industry report paints a stark picture of an industry dangerously close to being blind sided by legislative change. The biggest shockwaves are set to hit agency balance sheets:
- A Quarter of Revenue at Risk: On average, agents report that a significant 27% of their revenue currently comes from tenancy renewals. For agents in major cities like London, this figure jumps to a substantial 37%.
- The End of Fixed Terms: The Renters’ Rights Bill will usher in a single system of periodic tenancies and abolish Section 21. This move effectively eliminates the need (and ability) to charge renewal fees, immediately creating a massive hole in agency income.
With the Bill expected to become law in the next two monts, the survey’s findings on readiness are alarming:
- Sole Operators: Only 4% of sole operator agents feel “very prepared” for the change.
- Small to Medium Agencies: Only around a quarter of agencies with 2-10 staff members feel ready.
- Larger Agencies: Less than half (47%) of agencies with 11 or more staff members say they are ready.
A revenue crisis is on the horizon for any agency that relies on the old fee model and fails to adapt now.
The EPC Headache: Landlords Prepared to Sell, Not Spend
The compliance pressure isn’t limited to tenancies. Energy efficiency rules—specifically the proposed EPC Band C target—continue to drive tension and uncertainty in the market:
- Landlords are Resistant: A staggering 63% of landlords perceive the proposed EPC Band C target negatively, citing unwillingness or inability to meet the required investment.
- Tight Budgets: Nearly half (45%) of landlords say they would spend no more than £2,000 per property, with only 19% willing to exceed £5,000—far short of the estimated costs for compliance.
- The Sell-Up Threat: A deeply worrying 39% of landlords stated they would rather sell their properties than invest in the required energy efficiency upgrades, threatening a further contraction of the Private Rented Sector (PRS).
The Solution: A Strategic Pivot
Against this backdrop of financial threat and regulatory pressure, the priorities for agents over the next year are clear and interconnected:
- Win New Landlords: 70% of agents named attracting new landlords as a focus area.
- Generate New Revenue: 61% are focused on unlocking fresh revenue streams.
- Increase Fees: Over a third (39%) are focusing on achieving higher management fees.
The agencies that thrive will be those that master the new regulations and pivot their service model to meet the acute demand from landlords for compliance expertise and risk mitigation. They will stop selling fixed terms and start selling peace of mind.
Call to Action: Your Future Depends on Being Informed.
The time for planning is over. The Renters’ Rights Bill is here, and every week you delay restructuring your business model is a week you risk your core revenue.
The most successful agents are not waiting; they are investing in the knowledge to implement a profitable, compliance-first strategy.
Don’t wait until the full report drops next Tuesday and the rest of the market catches up.
Our in-depth training is specifically designed to transform your agency from a victim of the Renters Bill to a market leader. We’ll show you exactly how to:
- Replace Lost Renewal Fees with high-value, defensible compliance and management services.
- Convert your portfolio to a mandatory Full Management model that justifies higher fees.
- Master the new Section 8 grounds and the Ombudsman process to retain full control for your landlords.
Secure Your Agency’s Future Today.
Click here to view our essential Renters’ Rights Bill enters (Reform) Bill training and compliance workshops:
