PropTech managing director suggests that the increasing convolution of the PRS which is anticipated to accelerate in 2025 presents a significant opportunity for lettings agents.

Oli Sherlock of the PropTech company says: “I predict that 2025 will be a year of diversification for agents. It’s likely that we’ll see a noticeable increase in the number of lettings specialists who offer a broader, more nuanced range of services for the landlords in their portfolio.

“I expect agents to realise the value in their management of compliance and believe they have a real opportunity to improve the definition of their landlord proposition and therefore their fees.

“In our most recent State of the Lettings Industry, just under a third (29%) of landlords cited compliance as the main advantage of using a letting agent, up from 17% in 2023. This will likely rise further in 2025 as the Renters’ Rights Bill hits the statute books – something 70% of landlords feel negatively about.”

He emphasises that this expanded range of services will likely result in more agents managing insurance, move-in services, and other support needs for landlords.

He adds: “Retention of landlords will be as important (if not more so) than attracting new business, so engaging with any product/service that increases revenue whilst supporting a tighter relationship with landlords will be advantageous.”

The MD of another PropTech company, Tom Goodman, says: “There is still a lot of heat in the market and house building won’t come quickly enough to disrupt the upward trajectory around rents and demand any time soon. Both landlords and agents should expect the pace to remain brisk and demand to stay strong throughout 2025.

“It will also be a huge year for policy changes. The seismic change will come in the form of the Renters’ Rights Bill, but this won’t be the only regulatory or legal shift the sector will face over the coming 12 months. It’s likely that we’ll get further clarity on EPCs next year, as well as the introduction of a host of changes around taxation, including the National Insurance rise.