The transition from fixed-term tenancies to periodic could reduce revenues for agents by a quarter, research from Goodlord has found.
Agents say a quarter (27%) of their revenue comes from renewals, while for London this rises to 37%, the State of the Lettings Industry report shows.
William Reeve, chief executive at Goodlord, said: “The sector is under huge pressure on all fronts – tenants, landlords and agents alike are feeling the strain, with more changes and uncertainty still to come.
“This is a resilient sector that’s used to weathering storms, but the pressure seems to be increasing rather than abating.
“We hope these insights and full report shine a light on these areas and help decision makers take the necessary steps to ensure the PRS remains healthy, thriving and supported.”
Attracting landlords is the priority for 70% of agents, while 61% said they are prioritising new ways of generating revenue.
Energy efficiency rules continue to concern landlords, as 63% of landlords said they perceive the proposed EPC Band C target negatively, with many unwilling or unable to meet the required investment.
Nearly half (45%) say they’d spend no more than £2,000 per property, and only 19% would go above £5,000 – far short of the proposed £15,000 cap, ahead of the 2028 deadline for compliance.
Some 39% of landlords saying they’d rather sell than invest in the required energy efficiency upgrades.
