It's coming into force 1st May 2026. Spoiler Alert - it's not all negative! Read to the end.
The Renters’ Rights Act 2025 is going to reshape the sector, and for lettings professionals, the impact will be far more profound than most people realise. The biggest hidden risk? It’s going to be harder to hit revenue and commission targets.
Why? Because the entire structure of how lettings teams generate income is being rewritten. Renewal fees are disappearing, tenancies will become periodic by default, and the work of a negotiator will shift from “deal-doing” to “advisory, compliance, and landlord management.”
Here’s what every negotiator, manager, and agency owner needs to understand, and how to stay ahead of the curve.
Renewal Fees are disappearing, taking a huge chunk of income with them.
For years, many agencies have relied on renewal fees as a predictable, recurring revenue stream. Negotiators relied on them too, especially in markets where long-term tenancies brought significant commission.
But once periodic tenancies replace fixed terms, the renewal model collapses:
- No more guaranteed long-term renewals
- No more multi-year tenancies as “big hits”
- No more predictable renewal-based commission cycles
For many, that’s a direct hit to their ability to hit annual targets, especially in offices where renewals made up a substantial part of individual performance.
Agencies will need to completely rethink how they structure KPI targets.
Long-Term deals disappearing means fewer High-Value wins.
In Prime London especially, long-term agreements have traditionally created:
- Higher upfront fees
- Better quality tenants
- Larger commission to the negotiator
With the shift toward periodic tenancies, the “big win” of securing a long, high-fee tenancy becomes a rarity.
Lettings negotiators aren’t just losing a revenue stream, they’re losing a category of high-value transactions that helped them bridge gaps when the market slowed.
The removal of fixed-term agreements fundamentally lowers the ceiling on achievable commission for many.
More Regulation → More Work, More Admin, Less Selling
Negotiators are about to become defacto advisors.
The new landscape creates far more operational complexity for both landlords and tenants, including:
- New grounds for possession
- Stronger tenant protections
- Clearer rules on rent increases
- Fixed-term removal
- Compliance-heavy onboarding processes
This means lettings professionals will spend more time:
- Educating landlords on their rights
- Handling compliance and paperwork
- Managing expectations around notice periods
- Advising on rent review mechanisms
- Creating stability for nervous landlords
And maybe less time:
- Securing deals
- Generating revenue
- Prospecting
- Negotiating offers
In short: more work, more complexity, same salary, and fewer revenue opportunities.
Fee Structures will change, not always in favour of the Negotiator.
With renewal income dropping, agencies will need to shift toward:
- Increased management uptake
- Additional fee-for-service offerings
- Higher emphasis on monthly recurring revenue
- More portfolio-style income from landlords
This is good for long-term agency stability, but it may mean:
- Smaller upfront letting fees
- Reduced commission percentages
- More reliance on office-wide targets rather than individual deal fees
Negotiators may find their commission becomes:
- Less predictable
- Less lucrative
- Less tied to their personal performance
If compensation models aren’t restructured properly, we may see a spike in negotiator turnover across the industry.
Landlords will need more support, which is great opportunity for great Negotiators.
This is the positive side.
The negotiators who can embrace a more advisory, consultative role will become indispensable.
Landlords will need help navigating:
- Rent review options
- Increased compliance
- Understanding their rights and obligations
- Minimising void periods
- Maximising yield without relying on long fixed terms
- Managing tenant expectations
- Market repositioning for re-lets
The negotiator who can confidently handle all of this becomes far more valuable than the negotiator who can simply “get deals done.”
The winners of this new market will be:
- Better trained
- Better informed
- Better at landlord relationships
- Better at long-term client management
This is going to separate professionals from “order takers.”
The Skills profile of a modern Lettings Negotiator is about to change.
Historically, the best in lettings were:
- Good at viewings
- Good at building rapport
- Good at negotiating offers
- Good at fast-paced deal-making
Going forward, the top performers will be those who are also:
- Confident with legislative detail
- Strong in advisory and consultative communication
- Able to handle complex landlord scenarios
- Skilled in expectation management
- Experienced in portfolio-building conversations
- Effective in upselling management services
Lettings is becoming more strategic than before.
Those who upskill early will walk into promotions, better packages, and longer-term opportunities.
What Negotiators should do now to stay ahead.
Here’s how professionals can prepare, starting today:
- Ask your manager how your KPI and commission structure will change. Don’t wait until targets become unachievable. Get clarity now.
- Become an expert in the reforms. Agents who can explain the new rules simply will gain landlord trust instantly.
- Push for full management instructions. As long-term fees disappear, monthly recurring revenue becomes king.
- Strengthen your landlord relationships. Landlords are nervous. Those who can calm that nervousness will win business again and again.
- Frame yourself as a risk reducer, not just a deal closer. That’s the future of lettings.
The Bottom Line
The rental reforms aren’t just a legal shift, they’re a commercial shift.
The role, earning potential, and performance expectations of lettings negotiators will change. Some agencies will adapt and thrive. Some will misjudge the changes and lose staff. Some agencies will fall behind.
But the more proactive, skilled, adaptable professionals will:
- Make themselves indispensable
- Become trusted advisors
- Hit targets others can’t
- Position themselves for progression in a market that rewards expertise
Lettings obviously isn’t going away. But the old version of lettings is.
Those who evolve with it will be the ones who win.
