The upcoming Renters’ Rights Bill, set to become law by summer, is driving a surge in acquisition enquiries from independent letting agencies, according to Spicerhaart. The bill, marking the most significant housing law reform in over 30 years, is putting smaller agencies under pressure due to legal, operational, and financial challenges.

Spicerhaart’s acquisitions director, Joel Osbourne, highlights concerns over landlord exodus, rent controls, and eviction uncertainties, which could severely impact smaller agencies lacking financial reserves and diverse portfolios. The Government estimates the bill will cost letting agencies £391.7 million over the next decade, with 41% of landlords planning to reduce their rental holdings.

For many small agencies, years of economic strain from COVID-19, Brexit, tax increases, and fluctuating interest rates have already weakened profit margins. Osbourne suggests that these legislative changes could push many towards selling or consolidating, as business owners increasingly explore their options in a rapidly shifting market.