A RECRUITMENT OUTLOOK FOR ESTATE AGENCY IN 2026 – BY ANTHONY HESSE

As we look ahead to 2026, I wanted to share my perspective on what the recruitment landscape for estate agents and related property businesses is likely to look like over the next 12 months and, importantly, how forward-thinking firms can position themselves to succeed within it.

It will come as no surprise that recruiting good-quality people at all levels will remain competitive, and in many cases more so than we’ve seen for some time. However, for businesses prepared to act decisively, there are also clear opportunities.

The experience gap, and why it matters

Following last year’s increases in the National Minimum Wage and Employers’ National Insurance contributions, many agencies have understandably reduced or paused entry-level hiring. When experienced staff can often be recruited on similar base salaries, the commercial logic is clear.

The knock-on effect, however, is that the pipeline of future talent is narrowing. Candidates with the much-sought-after one to two years’ experience will increasingly be in short supply. We saw exactly this after lockdown. Entry-level hiring slowed dramatically in 2020 and 2021, and when the market accelerated, demand for experienced staff surged, but the talent pool hadn’t been replenished. The result was a prolonged shortage of experienced people. There are strong parallels with today, and those who plan ahead will be best placed.

Regulation and licensing (ROPA)

The proposed introduction of mandatory licensing under ROPA will add another layer of change.

Longer term, I believe this is a positive step. Clear professional standards should enhance the industry’s reputation and make estate agency a more attractive, credible career choice.

In the short to medium term, however, licensing is likely to tighten the labour market further. If formal qualifications become mandatory, the pool of immediately eligible candidates will reduce, increasing competition for those already qualified. Again, this reinforces the value of early, strategic hiring and development.

A changing employment landscape

The Employment Rights Bill received Royal Assent in December and is now the Employment Rights Act 2025, marking the most significant shift in employment law for a generation.

While common sense prevailed around day-one unfair dismissal protection (now set at six months), rising employment costs and legislative change mean that businesses are rightly being more considered in their hiring decisions. In this environment, clarity, preparation and expert advice are key.

Ongoing pressures on the talent pool

There are additional dynamics at play:

• The Renters’ Rights Bill is prompting many front-line lettings professionals to reassess their future, especially as this has potentially impacted their earning potential, with some moving into sales and others leaving the sector altogether.
• At the same time, the continued growth of the self-employed broker model is drawing experienced agents away from traditional employed roles.

Both trends reduce the available talent pool and further underline why attracting and retaining the right people has never been more important.

Final thoughts

In short, I don’t foresee a near-term improvement in the supply of experienced estate agents. Competition for proven talent will remain strong, and delays in hiring are likely to persist for businesses that wait too long to act.

That said, some of the most successful recruitment outcomes we see come from identifying high-potential, non-experienced candidates. These are individuals with transferable skills, strong attitudes and the appetite to build a career. Historically, many of our most successful introductions have been at entry level, and indeed many of our clients began their own property careers with our help.

With all of this in mind, I would strongly suggest that one of your key priorities for 2026 is ensuring your packages, working conditions and career propositions are competitive enough not only to attract talent, but to retain it. In today’s market, this is no longer optional, it is a genuine differentiator.

If you are hiring now, or planning ahead, I would be delighted to talk through current salary levels, benefits, working hours, weekend rotas or broader recruitment strategy.

I wish you every success in 2026 and look forward to working with you.