Regulation Rising, Stock Falling: UK Rental Market Update (9 October 2025)

Today’s update highlights the private rental sector under further pressure from regulation and retreating supply. More landlords are exiting the market or reducing their portfolio, squeezing the supply for tenants and letting agents alike. New compliance standards and agent qualifications for buying are signalling tougher oversight ahead.

The Top Headlines:

1. Landlord instructions hit record low, agents under pressure
   According to a recent RICS survey, net new landlord instructions (i.e. new stock coming onto the market) dropped to –38% in September, the lowest since May 2020, suggesting many landlords are exiting or reducing portfolios in the PRS, amid ongoing regulatory changes and cost pressures. Source
2. AI tech claims to give agents edge in capturing leads instantly
   ValPal Pro says its system can respond to portal enquiries in seconds, qualify leads and pre-book valuations automatically, essentially, putting agents at the front of the queue for new business. Source
3. Government consulting on mandatory qualifications for agents in housing reforms
   As part of its home-buying reforms, the government is exploring introducing mandatory qualifications to boost standards and improve the buying process. The consultation is considering using digital tools like property logbooks and standardised data-sharing, pointing to a move to digitalising the sector to improve accountability. Source
4. Winners named in £1.2m proptech innovation challenge
   Twelve technology firms were awarded funding through a government-backed PropTech Innovation Challenge, backing solutions aimed at accelerating UK housebuilding and infrastructure integration. Source
5. Founders behind Street CRM honoured for property tech leadership
   Heather and Tom Staff of Street Group, creators of CRM tools for the property sector, were recognised among The Times’ “Top 50 ambitious business leaders” for their role in proptech innovation. Source
6. Proptech awards, events spotlight sector momentum
   The UK PropTech Awards returns in its 8th edition, and Property Week has launched its new Tech Innovation Awards to highlight emerging real estate technology solutions. Source

Landlords & agents: This is the moment to get organised. Particularly in light of the government's Plan for Change prioritising digital records and logbooks to sell a property. There is an increasing need to streamline record-keeping, adopt digital compliance tools, and tighten tenant screening. LightWork AI reduces the stress of property management by keeping a centralised log of communications, repairs, and compliance documents, freeing your team to focus on relationship-building and strategy.

Contact LightWork AI to see how we can help, or book a demo below.