Renting in 2026: Reform, Risk & AI — Why Agents Must Evolve or Get Left Behind
By Kristjan Byfield, Co-founder of The Depositary
As featured in The Alto Agency Trends Report 2026
As the UK lettings industry steps into 2026, one thing is clear: this won’t be business as usual. Regulatory reform, rising operational costs, and seismic shifts in technology are redrawing the lettings landscape - and agents must evolve fast or risk being left behind.
The Alto Agency Trends Report 2026, in which I was invited to comment as a sector expert, is packed with insights from over 100 estate and lettings agents nationwide. The findings reflect a market under strain, but also full of ambition and resilience.
In this blog, I’ll unpack the data and trends that matter most to letting agents, property managers, and BTR/student accommodation providers - while also sharing the perspective I contributed to the report around compliance, AI, and the emerging expectations of today’s tenants.
The Data is Clear: Agents Are Under Pressure
According to Alto’s research:
63% cite economic uncertainty as their top concern
60% are worried about compliance and regulation
60% are feeling the squeeze from rising operational costs
Among larger firms, 100% flagged compliance as a key challenge
The introduction of the Renters’ Rights Act alone - cited as the top regulatory concern by 79% of agents - will fundamentally change how agents manage tenancies. The legislation abolishes Section 21, ends fixed-term tenancies, caps rent hikes, and introduces a national landlord register.
For letting agents, that means a higher administrative burden, greater legal risk, and a much lower margin for error. This is especially acute for small agencies already juggling lead gen, paperwork, and landlord communication - often with minimal staff and outdated systems.
The Rise of the AI-Augmented Renter
In my commentary for the report, I highlighted a crucial and under-discussed shift:
“What will separate the leaders from the laggards isn’t compliance, it’s capability. The real shift in 2026 is the rise of the AI-powered tenant.”
Tenants are now equipped with AI tools that can auto-generate legally referenced emails, file formal complaints, or challenge landlords on unclear documentation. These renters expect fast, knowledgeable, and compliant responses.
Agents must now evolve from task processors into strategic, emotionally intelligent operators who can resolve issues quickly, legally, and with empathy. That’s where automation and AI aren’t just useful - they’re essential.
Automation as Advantage: The Depositary in Action
At The Depositary, our mission has always been clear: Make end-of-tenancy easier, faster, better - for everyone involved.
While our platform already helps agents complete tenancy conclusions in around 15 minutes instead of 3 hours, we’re not stopping there. Our roadmap is focused on hitting a sub-5-minute average, using API integrations, AI tools, and smarter workflows.
Our clients are already seeing the results:
Tenants get their deposit back 9 days faster than the UK average
Landlords receive better documentation and transparency
Agents reduce time, stress, and legal exposure - while delivering exceptional service
“Tech is only transformative if it frees your team to bring the magic - including care, insight and instinct.”
That’s not just a quote from the report - it’s how we build at The Depositary.
Sector Voices: What Other Experts Are Saying
Sarah Bush, Cheffins - "Resilience is the watchword of 2026"
“With the right guidance and support, the new legislation doesn’t need to be daunting... CRMs need to be reliable and agile, which is exactly what we have found at Alto.”
Siân Hemming-Metcalfe, Inventory Base - "Compliance becomes commercial"
“The agents who win in 2026 won’t be the ones claiming they’re compliant — they’ll be the ones who can prove it, quickly and consistently.”
Oliver Wells, BridgeAI - "AI moves from advantage to baseline"
“AI-enabled operations are fast becoming the baseline. Those who adapt early will protect margins, improve service and unlock growth.”
Chris Brett, Mike Neville Estate Agents - "The basics still matter"
“Customers still want a local presence, great service and a smooth journey... These things are still highly effective, but too often forgotten.”
Kerry Aldridge, Goodlord - "Tech is the route to higher standards"
“Agencies that invest early won’t just stay compliant — they’ll deliver a smoother, more dependable experience for landlords and tenants alike.”
Anthony Stankard, Reside Manchester - "Automation unlocks growth"
“Alto didn’t just improve how we work – it changed what we’re capable of.”
AI and Automation: A Growth Strategy, Not Just a Cost Saver
Alto’s report shows that:
63% of agencies are prioritising efficiency
52% are focused on enhancing customer experience
51.6% plan to adopt AI tools in 2026
Agencies using predictive tools like Alto Prospecting saw a 22% uplift in instructions
The message is clear: forward-thinking agents aren’t just plugging compliance gaps - they’re using AI and automation to win market share, attract landlords, and unlock new revenue.
Final Thought: This Isn’t Just Change - It’s Acceleration
As I noted in the report:
“The industry will polarise: mega-scale corporates at one end, hyper-effective independents at the other. Both will win - if they deliver what clients actually value.”
That value in 2026 is clear:
Transparent, compliant processes
Fast, human-centric service
Platforms that do the heavy lifting
At The Depositary, we’re not just responding to change - we’re shaping it. If you’re ready to streamline your end-of-tenancy process and delight both tenants and landlords, let’s talk.
