Disruption has erupted in the property market in the form of the Renters’ Rights Bill. It’s a once-in-a-generation shift. A strong rental sector is a core part of a healthy property market and a stable economy. This new bill has sent shockwaves through the rental sector. Landlords have left in droves for fear that the abolishment of Section 21 will increase the difficulty and cost of removing tenants. Expanded notice periods and longer thresholds for rent arrears are also contentious issues for private landlords. Worries include the stability of their rental income as the bill will eliminate fixed terms and shift to periodic tenancies. It will also limit the amount of rent that can be taken in advance, prevents rental bidding wars and restricts rent increases to once a year only. Many landlords feel the new bill is heavily favoured toward the tenant and as a result, they’ve sold up and moved on before the bill has passed.
The landlord exodus is evident, and our analysis found 111,696 homes left the private rental market in 2024 after being sold by landlords. The knock on has seen available stock for renters at levels 19% lower than in 2019, with stock reducing in all price brackets and regions of the UK. Meanwhile, thanks to low stock, Let Agreed prices have risen by a whopping 36% since 2019.
For letting agents, it’s essential to be clued up on how the bill will impact you and your landlord clients. According to The Impact Assessment published by the Ministry of Housing, Communities and Local Government, the Renters’ Rights Bill will cost letting agencies £391.7m over the next decade as a result of fewer landlords using agency services. Although many landlords have left the sector and this has impacted agency revenue, the bill actually presents a huge opportunity for forward-thinking agents to attract more landlords, who haven’t sold up yet, to use their services.
Let’s look at what these opportunities are and how TwentyEA can help support you in attracting more business.
The new bill gives tenants more power to challenge rent increases, with disputes handled by a free-to-use tribunal system. This makes accurate pricing essential. Rent hikes must be fair, realistic and backed by solid evidence. The goal is to put a stop to backdoor evictions, which see rents pushed up to force tenants out. Landlords will likely become more cautious around pricing and turn to agents for guidance.
With tighter regulations and the threat of a tribunal, data-backed market insights and accurate pricing will be more valuable than ever. Agents and landlords need to be prepared to be scrutinised. Our tool, Insight, gives you real-time data on rental averages by postcode and property type so you can prove that your rent is aligned with current market conditions, not just an arbitrary figure. Insight tells you the Let Agreed price, not just the advertised one, so you’ll get a more accurate picture of what’s happening in your local area.
The bill will only allow one annual rent increase. What’s more, tenants will no longer be able to negotiate a rent reduction in exchange for taking longer tenancies, as the bill will abolish fixed terms. Bidding wars will also no longer be allowed, as there will be a ban on paying more than the advertised rent. All of these regulations combined mean it’s essential to get the price right first time.
Use Insight to guide your landlord clients and build trust. Employ it to defend against challenges and tribunal claims from tenants by showing them fair comparisons. You’ll have access to data on local rent trends, supply and demand and property values to prove your rent aligns with the market, helping you stay compliant.
With Insight in your back pocket, you can ensure you don’t overvalue and land yourself in hot water. Data-backed pricing will set you apart and increase your chances of securing more management contracts.
In addition to this, you can use Insight to keep an eye on the property market and see what’s happening with demand and stock levels. This will help you to anticipate future rent levels.
Agents can also take advantage of our Decision Rental Automated Valuation Model (AVM). It tells users how much a rental property can obtain per calendar month. Having worked on perfecting our AVMs since 2017, they are market-leading and some of the most accurate AVMs in the UK market.
Our rental AVM is available via an API. You can use it to research other properties and see how rental rates compare in your local area. We’ll also give you access to our DOMUS database, a comprehensive dictionary of property attributes for 32 million residential properties. Take a look at attributes such as square footage, age of property, parking facilities and more, that will all impact rental price. Using our API you can pull any property attributes you’re interested in, along with the AVM rental value, directly into your CRM or other platforms. It makes rental valuations a breeze and with our property market expertise, you can rely on the results to be fair, accurate and reliable.
The bill opens up many questions and concerns. Frankly, it has landlords running scared, so it may push those landlords who currently operate independently to seek out some hand-holding and professional support with a qualified letting agent. If you stand out, helping landlords to navigate the changes and demonstrating your knowledge and experience, you’ll strengthen relationships and win more fully managed clients. With fines up to £40,000, landlords are nervous and want to avoid costly legal disputes. Offer your services to protect them from these financial penalties.
The lack of fixed-term contracts could lead to greater tenancy turnover, so landlords may want a more hands-off approach and seek the help of professional management. The bill will require watertight paperwork and record-keeping, something independent landlords may not be good at or want to deal with. There will also be tougher anti-discrimination laws and an agent like you can ensure that they comply with the regulations on tenants with children and those on benefits.
Agents can help landlords comply with the private rented sector database requirements, which will likely include tasks like uploading gas and electrical safety certificates. Landlords who aren’t using agents may want to start at least for twelve months until they find their feet with the new regulations. You can help guide them through this new bill and ensure they remain compliant.
To summarise, as an agent, you can assist with:
It’s time to stand out! An agent who is proactively preparing for the bill and providing updates will establish a reputation as an informed, compliant agent who will ultimately win more business. You can do this through webinars, targeted email campaigns or social media.
Ensure that your agency is primed to attract landlords. As well as keeping them up to date with the law, you can add value by demonstrating local market knowledge. Insight gives you everything you need to know to become the local expert. When you’re holding webinars or meetings to update about the bill, you can educate your clients on what’s happening in the property market with real-time stats. Position yourself as the expert and watch as landlords flock to you to fully manage their property portfolios.
With increased tenant protections, pricing scrutiny and potential tribunal involvement, data-driven insights will be your strongest ally in protecting your landlords. If a rent increase is challenged, agents must present solid evidence that reflects rents in the local market. That’s where TwentyEA’s tool Insight can support your valuations.
Across the UK, 19,000 letting agents are competing for just 18% of landlords who choose fully managed services. The bill opens up the opportunity to win more business as landlords struggle to navigate the new regulations. Standing by your clients will give them the confidence to stay in the sector. Don’t fear the bill, grab the opportunity it presents with both hands!
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