Despite the progress made in 2025 to reduce mortgage and inflation rates in order to incentivise consumer participation, several estate and letting agents have raised concerns regarding the property market in 2026. Underlying these concerns are the ways in which regulation compliance and financial factors will affect how estate and letting agents engage with the property market.
Riccardo Iannucci-Dawson, the chief executive officer of Alto Software Group, argued: ‘Agents are under siege from every direction, from inflation and insurance hikes to new laws and landlord losses.’
General Concerns
A recent survey published by Alto has curated the opinions of 250 estate and letting professionals across the UK in order to identify widely acknowledged concerns. ‘Our goal’, Lannucci-Dawson said, ‘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.’
Ten major points were identified as pressing issues for estate and letting agents. These were local licensing schemes, Anti-Money Laundering compliance, Renters’ Rights Bill, EPC and energy-efficiency standards, recruitment and retention, competition from online and hybrid agents, lead generation and conversion, compliance and regulation, rising operational costs, and economic uncertainty.
To look more closely at the statistics, 63% of agents cited economic uncertainty as their biggest challenge in 2026. Close behind is 60% pointing at operational costs as a major challenge. Time Moore, an economics director at S&P Global Market Intelligence, said: ‘Despite a lifting of budget-related uncertainty, delayed spending decisions were still cited as contributing to weak sales pipelines at the close of the year.’
An equal number also cite regulation compliance as a pressing matter. 79% signal out the Renters’ Right Bill as the most worrying concern – a bill which, in the words of Lannucci-Dawson, ‘is the most significant shake-up of the renter sector in a generation and will test many independents.’ 50% cite EPC and energy-efficiency rules as concerning, while 36% point out local licensing schemes as a source of alarm.
The survey shows that letting and estate agents are feeling the financial and regulatory pressures coming out of 2025. This pressure, both current and anticipated, is influencing the general outlook of the UK property market in 2026.
General Market Expectations
Even though estate and lettings agents are concerned about financial and regulatory pressures, the overall property market expectations in 2026 are positive.
Rightmove, for example, forecasts that average asking prices will rise by approximately 2% in 2026, underpinned by better buyer affordability, increased stability, and an impetus from buyers to make the move. Cities such as Manchester and Liverpool are expected to be among the most active markets across the UK.
General economic conditions have strengthened over 2025, and this has led many industry experts to anticipate that there will be overall greater market participation in 2026. Jonathan Hopper, the CEO of Garrington Property Finders, said: ‘Falling prices, combined with lower interest rates and rising salaries, have made homes more affordable, and Halifax’s data shows that the house price to income ratio is now at its lowest level in over a decade.’
‘Many sellers’, Craig Vile, the director of ValPal Network, said, ‘were clearly active in the background, checking values and preparing, even if they were not ready to move straight away. When sellers were motivated or circumstances demanded it, they moved quickly and decisively.’
Vile added: ‘As the market moves into 2026, improving affordability and greater economic clarity should help shorten decision-making timelines. The data suggests there is a sizeable group of sellers who have already done their homework and are simply waiting for the right moment to instruct.’
As the market adapts to the broader economic circumstances, so are letting and estate agents in finding optimal ways to engage with the property market. Alto identified that 63% of those surveyed stated that improving efficiency through technology is a major growth strategy they wish to prioritise in 2026. In doing so, agents aim to cut admin costs and raise overall time efficiency.
Iannucci-Dawson warned: ‘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.’
Overall Perspective
The Alto survey underscores two important points. The first is that the financial and regulatory ramifications of 2025 have caused letting and estate agents to hold a guarded posture heading into 2026, careful to see how the key metrics perform over the coming year.
The second is that agents are increasingly seeing the benefits that technology can bring to the property industry. Given the speed at which technological innovation continues to revolutionise major industries across the UK, it is important for agents to be open to incorporating technology in order to raise operational efficiency.
