Economic uncertainty tops agents’ worries in 2026
“Make-or-break” 2026 looms for estate agents as costs, red tape and reform pile pressure on sector
Agents warn of ‘survival year’ ahead as new Alto Agency Trends Report reveals deep fears over rising costs and regulation
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.
That’s according to the newly released Alto 2026 Agency Trends Report from Alto, the UK’s leading all-in-one estate and lettings CRM platform, which polled 250 estate and lettings professionals across the UK and reveals mounting anxiety across the sector for the year ahead.
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.
When asked which upcoming regulations worry them most, an overwhelming 79% named the Renters’ Rights Bill, then 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
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Economic uncertainty
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Rising operational costs
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Compliance and regulation
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Lead generation and conversion
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Competition from online and hybrid agents
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Recruitment and retention
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Renters’ Rights Bill
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EPC and energy-efficiency standards
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Local licensing schemes
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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.”
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