UK estate and letting agents are entering 2026 facing significant challenges, as rising costs, economic uncertainty and regulatory changes threaten already tight margins.
The newly released Alto 2026 Agency Trends Report, based on a survey of 250 UK estate and lettings professionals, highlights widespread concern across the sector.
Nearly two-thirds of agents (63%) cited economic uncertainty as their biggest challenge next year, while rising operational costs (60%) and compliance and regulation (60%) were also major concerns. The regulations worrying agents most were the Renters’ Rights Bill (79%), followed by EPC and energy-efficiency rules (50%) and local licensing schemes (36%).
“Agents are under siege from every direction, from inflation and insurance hikes to new laws and landlord losses,” said Riccardo Iannucci-Dawson, CEO of Alto.
“The Renters’ Rights Bill is the most significant shake-up of the rental sector in a generation and will test many independents.
“At Alto, we’re already building new tools that make compliance simple and seamless, from bulk conversion of fixed-term to periodic tenancies, to automated rent-review alerts and updated legal templates. Our goal is to take the admin and uncertainty out of reform so agents can stay compliant, protect income, and focus on delivering a great experience for landlords and tenants.”
Alto’s new industry report paints a stark picture of an industry under pressure, with smaller independent agencies focused on staying afloat, mid-sized firms grappling with staff burnout and efficiency challenges, and larger groups wrestling with compliance at scale.
The top 10 challenges keeping agents awake at night in 2026
+ Economic uncertainty
+ Rising operational costs
+ Compliance and regulation
+ Lead generation and conversion
+ Competition from online and hybrid agents
+ Recruitment and retention
+ Renters’ Rights Bill
+ EPC and energy-efficiency standards
+ Local licensing schemes
+ Anti-Money Laundering (AML) compliance
Despite the headwinds, the report also highlights how agents are responding.
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.
“The message from agents is clear: efficiency is survival,” Iannucci-Dawson added.
“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.”
