Letting Agents Plan to Raise Fees Ahead of Renters’ Rights Act

Why It Matters

Higher agent fees could accelerate landlord churn, tightening rental supply and pressuring an already volatile UK rental market.

Key Takeaways

• Agents anticipate fee hikes to cover new compliance workload.
• 59% of landlords cite high fees and poor value.
• 76% of agents report an admin avalanche from the Act.
• Potential landlord exits could intensify rental supply shortages.

Pulse Analysis

The Renters’ Rights Act, enacted to strengthen tenant protections, introduces stricter repair timelines, clearer notice periods and expanded dispute mechanisms. While these changes aim to improve the rental experience, they also create a substantial compliance workload for letting agents, who must adapt contracts, upgrade software, and allocate staff to manage the new processes. This regulatory shift is reshaping the cost structure of the residential letting business, prompting many firms to reassess their fee models to maintain profitability.

Goodlord’s recent survey of 2,650 agents, landlords and tenants highlights a growing tension. Over three‑quarters of agents describe an "admin avalanche," and landlords are increasingly dissatisfied, with 59% pointing to high fees as a primary grievance. The prospect of fee hikes compounds this discontent, as landlords weigh the marginal benefit of professional management against rising costs. For many, the calculus now tips toward self‑management or even exiting the private rented sector, a move that could erode the steady cash flow that agents rely on.

The broader market implications are significant. A wave of landlord exits would tighten the already constrained rental supply, potentially driving up rents and reducing housing affordability. Property owners may also seek alternative service models, such as technology‑driven platforms that promise lower fees and streamlined compliance. For agents, the challenge is to balance fee adjustments with value‑added services that rebuild goodwill. Investing in automated compliance tools, transparent pricing and proactive maintenance can mitigate churn and preserve the sector’s stability as it navigates this once‑in‑a‑generation transition.