RENTERS’ RIGHTS BILL – SURVEY FINDINGS OVERVIEW – PROPERTY PERSONNEL

We recently distributed a survey to lettings businesses across the country and were delighted by the strong response. We have since analysed the data and compiled an overview of the key insights below.

 The findings point to an industry in transition rather than full transformation. While there is widespread acknowledgement that change is coming, most agencies remain in a review phase rather than actively implementing new strategies. Nearly half of respondents (49%) are currently reviewing their commission structures, yet only 16% have made firm decisions, with a further 8% unsure how they will respond. Commission models continue to rely heavily on upfront income, and there is still no clear or consistent approach to managing early tenancy risk. This lack of alignment presents a significant opportunity for agencies prepared to act decisively.

The data reflects a predominantly independent agency landscape, with 100% of respondents operating as independent businesses. Of these, 55% are single-branch operations, while 45% operate across multiple offices. This highlights a sector largely made up of SME operators, where margins are closely managed, structural change can take longer to implement, and commercial decisions are often approached with caution.

Across the market, lettings agencies continue to favour traditional, upfront-driven commission models. Currently, 43% base commission on upfront tenancy fees, while 65% pay commission in full at the point of move-in. Only 14% align commission with ongoing management income, reinforcing the sector’s reliance on immediate revenue. In addition, 52% link commission solely to new lets, although 44% operate across multiple income streams.

Approaches to early tenancy termination vary considerably. Around 41% of agencies refund landlords on a pro-rata basis, while 33% assess situations individually on a case-by-case basis. Only 12% retain full fees. This variation reflects a broader theme of uncertainty within the sector, with no consistent or widely adopted approach emerging.

A similar pattern is evident in how agencies are planning to manage early termination risk. Around 22% intend to absorb the risk within the business, while 20% are considering staged commission payments and 18% are exploring clawback mechanisms. However, a significant 29% remain unsure of their approach, further highlighting the lack of clarity across the industry.

Among those considering structural changes, there is a clear preference for flexibility. Case-by-case handling is the most common approach at 46%, while 26% are considering pro-rata clawback models. This suggests a degree of hesitation around implementing more rigid frameworks, particularly where there may be implications for staff motivation or retention.

One of the strongest trends emerging from the findings is the likelihood of fee increases. Currently, 55% of agencies are considering raising their fees, while only 14% state they do not plan to increase them. However, rather than implementing straightforward headline increases, 26% are considering introducing additional compliance-related charges, with many still reviewing their overall pricing strategy. This reflects an awareness of rising operational costs, balanced against sensitivity to landlord expectations.

Despite ongoing regulatory changes, the overall structure of lettings roles is expected to remain largely consistent. Around 67% of respondents believe roles will continue to be commission-led, with only 17% anticipating a shift towards more salaried models. That said, there is some recognition that roles may evolve, particularly with increased focus on compliance, administration, and portfolio management.

At present, many agencies have yet to take formal steps to reflect these changes internally. Around 43% have not yet reviewed employment contracts, and only 8% have begun implementing updates. This further reinforces the overall theme of a sector that is aware of change, but not yet fully committed to action.

If you’d like to receive the full breakdown, please get in touch with us at enquiries@propertypersonnel.co.uk and we’ll be happy to share the information with you.