Estate and letting agents across the UK remain remarkably confident in their long-term future, despite economic uncertainty tightening margins and sweeping regulatory reform, the newly published Reapit Property Outlook Report 2025 reveals.
The national survey of property professionals found that 76.3% of agents plan to remain in the sector for at least the next five years – a significant rise from 66.1% in 2024, when Reapit’s Rental Confidence Index was last published under the PayProp brand.
The findings highlight the sector’s underlying resilience amid a backdrop of challenges including the rollout of the Renters’ Rights Bill, incoming EPC changes, and recent stamp duty revisions.
Regulatory reform dominated agents’ concerns, with nearly 60% citing new regulations as their biggest challenge, followed by legislation (52%) and profitability (just under 50%).
AFFORDABILITY PRESSURES
Sales agents are particularly affected by changes introduced in April, which halved the stamp duty nil rate band to £125,000, compounding affordability pressures already exacerbated by higher interest rates.
Despite these headwinds, 43% of agents rate their local sales market as stable, with a further 38.3% reporting strong performance, bolstered by a pre-April surge in buyer activity.
Dr Neil Cobbold 9main picture), Commercial Director at Reapit, says: “Agents are continuing to show remarkable resilience. What we’re seeing is not blind optimism, but a recognition that PropTech and smart operational decisions can prepare agencies for the future.”
PROPTECH INVESTMENT
Across both sales and lettings, agencies are increasingly turning to PropTech to streamline operations and protect margins. Over 61% of agents consider technology a worthwhile investment, and more than half reported increasing automation within their business over the past year.
Conveyancing delays (60.2%), high competition (49.2%) and managing realistic asking prices (46.1%) were flagged as key challenges, particularly in sales.
But many believe these hurdles can be addressed through better digital processes and client engagement.
Cobbold adds: “In both sectors, technology adoption is not just about cutting admin – it’s about enabling growth. The agents who succeed are those who serve more clients, more effectively, with fewer overheads.”
M&A APPETITE SIGNALS CONFIDENCE
The report also reveals a strong appetite for strategic growth, with 45% of respondents having acquired or planning to acquire another agency or rental portfolio in 2024. Only 16.2% said they were considering selling, down from previous years.
Cobbold adds: “Agents are adapting. They’re investing, expanding, and embracing change. That’s not just resilience – it’s confidence in the future of the market.”
