Let’s be frank: the lettings market in 2024 is and continues to be in turmoil.
Around 30% of landlords are either drowning under the weight of compliance and cost pressures or packing up altogether, abandoning the sector. And can you blame them? The government piles on regulations faster than anyone can respond, leaving landlords stuck between a rock and a hard place, forced to either brace themselves for another legislative storm or cut their losses and leave.
Meanwhile, tenants are facing a rental market in utter disarray. Rents are climbing 10% year-on-year, with families paying more for less. Demand is outstripping supply to such an extent that the lettings process feels like musical chairs, except there’s no music and nowhere near enough chairs.
And inventory providers? We’re right in the thick of it all.
But here’s the uncomfortable truth: while we pride ourselves on being central to the lettings ecosystem, how much do we actually know about our own sector? Who’s thriving, who’s buckling under pressure, and (most importantly) how are we evolving to meet the demands of a market that seems to shift with every passing moment?
A Market Under Siege
The Renters’ Rights Bill is expected to land by July 2025, and its ripple effects are already making waves. No more Section 21 evictions. Periodic tenancies as the new normal. And let’s not forget the Decent Homes Standard, which will hold landlords to a level of accountability they’ve never faced before.
These are major shifts, and the warning signs are already flashing:
- 30% of landlords planning to sell or exit the market.
- Rents soaring as demand massively outstrips supply.
- Over 60% of landlords naming compliance as their biggest headache. (Goodlord Lettings Report 2024)
This is not just a challenge – it’s a battle. For inventory providers, the landscape is no less fraught. How many providers are still operating? How many have quietly slipped away? And, critically, are we ready to shoulder the increased demand that will inevitably come as landlords scramble to comply with yet more legislation?
What’s Happening on the Ground
From my vantage point, it’s clear that inventory providers are responding to this upheaval in markedly different ways. Some are rising to the occasion, innovating and adapting, while others seem paralysed by the pace of change.
Take a recent example I encountered: one provider has overhauled their inspection processes to align with Decent Homes standards, proactively using Inventory Base templates and the Fitness for Human Habitation legislation. The result? Not only are they meeting compliance head-on, but they’re also cementing themselves as trusted allies to landlords; advisors, not just service providers.
And this is the crux of it. Our role is no longer just about recording the state of a property. It’s about safeguarding compliance, protecting investments, and ensuring smoother, less contentious tenancies. Those who fail to see this will be left behind.
Why It Matters
Let me be frank and blunt: the lack of clarity and cohesion in our sector is holding us back. We have no meaningful data on our own performance. We don’t know who’s succeeding, who’s struggling, or what best practice really looks like. And as a result, we’re stumbling where we should be sprinting.
- Missed Growth Opportunities Without clarity, we risk stagnation. Are we attracting the next generation of providers? Scaling fast enough? Innovating where it counts?
- No Advocacy for Ourselves Inventory providers are crucial to compliance and risk management, but our role is often overlooked or dismissed. We need to make our voices heard—loudly and unapologetically.
- Vulnerability to Disruption Emerging providers, unburdened by legacy systems or old habits, are moving faster and more efficiently. If we don’t adapt, we will be left in their wake.
- No Benchmarks Without data and standards, how do we measure success? Are we competitive? Are we delivering genuine value?
What Needs to Happen
This is a defining moment for our sector. To meet the challenge, we must:
- Leverage Resources: Take advantage of insights from organisations like Propertymark to ensure we are leading on compliance, not chasing it.
- Define Standards: Step up and set the benchmarks ourselves. What does excellence look like in our industry? We must lead the conversation.
- Be Proactive Partners: Landlords and agents need guidance now more than ever. Inventory providers must position themselves as their go-to experts, offering practical solutions to navigate the changes ahead.
And let’s not forget: innovation is not optional. The tools are there – advanced templates, streamlined processes, and technology that empowers providers. It’s time to embrace them fully.
The Opportunity Ahead
For what it’s worth, my final thoughts:
The lettings sector is under siege, but 2025 brings a defining moment – a chance for inventory providers to step forward, not just as participants in this industry but as leaders. The challenges ahead are real: the Renters’ Rights Bill, the Decent Homes Standard, and a market under intense scrutiny. But with challenge comes opportunity.
Inventory providers are uniquely positioned to lead – not just to react, but to anticipate, guide, and shape the future of the sector. By 2025, the market will need more than checklists and reports; it will need expertise, innovation, and leadership.
Here’s what stepping up looks like:
- Drive Innovation: Embrace tools like geolocation, smarter reporting templates, and automation. These technologies aren’t just extras – they’re critical for scaling your operations and handling the increased demand.
- Navigate Legislative Change: Stay ahead of the Renters’ Rights Bill and the Decent Homes Standard. Build expertise in these areas now so you can offer landlords and agents proactive solutions and position yourself as their go-to compliance expert.
- Build Relationships: Strengthen partnerships with landlords and agents. Show them you’re not just a service provider but a trusted advisor who can help them navigate change and succeed in a challenging market.
- Set the Standard: Take ownership of your role in shaping industry benchmarks. Lead by example in reporting quality, efficiency, and value, and set a high bar that others will follow.
2025 is going to be a turning point for the lettings industry. It’s time to take the pieces of this fractured market and build something stronger, more resilient, and fit for the future.
The market doesn’t need passive spectators – it needs leaders, innovators and problem solvers. The question isn’t “What’s next?” It’s “Who’s ready to lead?”
I’d love to hear your thoughts. How are you preparing for the challenges and opportunities ahead? What changes do you think are needed?