Renters Rights Act boosts lettings demand for Foxtons agency
Foxtons reports increased lettings revenue and property management demand following the Renters Rights Act, despite ongoing challenges in the sales market. The agency highlights growth in Build to Rent and landlord services as key drivers.
Foxtons, a major London estate agency, has revealed that the Renters Rights Act is generating new business opportunities in its lettings division. The Act, which has introduced significant changes to tenancy rights and landlord obligations, appears to be prompting landlords to seek professional management services more frequently.
In a statement to shareholders, Foxtons outlined that while the sales market remains weak, the lettings side is performing strongly. The agency has seen a 29% increase in Build to Rent revenue and a 17% growth in ancillary landlord and tenant services, alongside a 10% rise in cross-selling of property management offerings.
Foxtons’ strategic response to rental sector changes
Foxtons attributes these lettings gains to the Renters Rights Act driving demand for professional agency services and accelerating industry consolidation. The agency is expanding its footprint through acquisitions in complementary markets and plans further bolt-on purchases combined with organic investment.
Chief Executive Officer Guy Gittins acknowledged the challenging sales environment, noting that 2026 is expected to be one of the lowest years on record for London property transactions. Foxtons has implemented cost-saving measures, including “right-sizing” the business, resulting in savings of £4.5 million over the past year.
Gittins urged the government to prioritise Stamp Duty reform, describing it as the main barrier to home moving, which indirectly affects the rental market by limiting tenant mobility and turnover.
Context of the Renters Rights Act impact on landlords and agents
The Renters Rights Act, introduced to strengthen tenant protections and improve rental sector standards, has increased compliance requirements for landlords. This has led many to engage professional letting agents to manage complex tenancy obligations, safety standards and documentation.
Foxtons’ experience reflects a broader trend where landlords seek agency support to navigate the new regulatory environment. The Act’s emphasis on tenant rights and landlord responsibilities has raised the operational burden, encouraging consolidation among letting agencies and growth in Build to Rent schemes, which offer professionally managed, large-scale rental housing.
While the sales market struggles with transaction volume declines and tax barriers, the lettings sector benefits from the Act’s push towards professional management and longer-term tenancies.
Practical implications for landlords and letting agents
For landlords with small or medium portfolios, the Act means increased need to ensure compliance with tenancy law changes, safety obligations, and tenant communication protocols. Engaging a letting agent with expertise in the new legal framework can reduce risk and improve tenant relations.
Letting agents can capitalise on this demand by expanding property management services and advising landlords on regulatory compliance. The growth in Build to Rent also offers opportunities for agencies to specialise in managing institutional rental schemes, which are less affected by market volatility.
However, landlords should prepare for potentially higher management costs and ensure their properties meet the enhanced standards mandated by the Act.
Remaining uncertainties and what to watch
Despite early signs of lettings growth, the full impact of the Renters Rights Act on the rental market remains to be seen. Some landlords may exit the sector due to increased compliance costs, while others may delay investment pending further government guidance or reforms.
The government’s approach to Stamp Duty and other housing taxes will also influence market dynamics, affecting tenant turnover and demand. Landlords and agents should monitor policy developments closely, especially any changes to possession rules or safety regulations that could affect operational practices.
Additionally, the pace and scale of industry consolidation driven by the Act could reshape competition among letting agents and property managers.
What landlords should consider now
Landlords should review their tenancy agreements, safety certificates and property management arrangements to ensure compliance with the Renters Rights Act. Engaging professional agents experienced with the new legal landscape can help mitigate risks and improve tenant satisfaction.
It is also advisable to assess the financial impact of increased regulatory requirements and factor this into rent-setting and portfolio planning. Landlords should keep abreast of government announcements on housing taxes and tenancy reforms that may affect their business.
For letting agents, expanding services to include compliance support and Build to Rent management could provide growth avenues. Maintaining clear communication with landlords about regulatory changes will be essential.
Supporting landlords through regulatory change with TLA
The Landlord Association (TLA) offers members access to compliance resources and practical guidance tailored to the evolving regulatory environment shaped by the Renters Rights Act. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, aims to assist landlords and letting agents by organising property records, managing tenancy documentation, and recording key compliance actions.
Membership also provides updates on regulatory developments, helping landlords stay informed about changes affecting tenancy law, safety obligations and possession procedures. ORBIT’s tools for retaining evidence of compliance and monitoring property management activities can support landlords in meeting their legal responsibilities under the Act.
Exploring TLA membership or ORBIT BETA access can be a practical step for landlords and agents preparing for ongoing regulatory shifts in the private rented sector.
Looking ahead, the rental sector’s adaptation to the Renters Rights Act will likely continue to drive demand for professional property management. Landlords who proactively engage with compliance and tenant service improvements may find opportunities for sustainable portfolio growth despite broader market uncertainties.
Sources: Letting Agent Today
TLA - The Landlord Association