Letting agent fees are climbing following the introduction of the Renters’ Rights Act, with a significant portion of property owners reporting higher overheads. A survey conducted by Goodlord involving nearly 250 landlords found that 23% have experienced fee hikes since the legislation became active. These figures indicate that the recent reforms are exerting broader pressure on the residential rental market.
Rising Compliance and Operational Burdens
Half of the surveyed individuals reported an increased compliance burden under the new regulatory framework. Beyond these administrative costs, 25% of respondents identified difficulties regarding the repossession of properties from problematic tenants as a primary concern. This shift follows the abolition of Section 21 no-fault evictions on May 1.
Landlords are now required to utilize Section 8 when seeking possession, which necessitates providing specific legal grounds. For cases involving rent arrears, owners must wait four weeks after serving a notice before initiating formal proceedings. This requirement doubles the prior notice period, creating a situation where court backlogs could potentially lead to prolonged delays for property owners seeking resolution.
It is possible that as the legal system struggles to process these new requirements, we might see a more pronounced exodus of smaller, private landlords who lack the administrative capacity to manage extended vacancy periods. This could further tighten supply in an already strained housing sector, eventually forcing agents to consolidate their service offerings to remain competitive while maintaining profitability.
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Shifting Approaches to Tenant Selection
The legislative environment appears to be altering how property owners manage their portfolios. Two in five participants, or 39%, stated they have implemented more cautious vetting procedures. Meanwhile, 9% are allocating additional resources toward tenant retention programs to minimize turnover.
Tenant fraud remains an underlying issue within the sector. Recent estimates suggest that fraudulent tenancy applications cost the private rental market approximately £4.1bn annually. Research spanning from July 2025 to June 2026 identified 41 suspected fraudulent applications per 1,000 checked.
These data points highlight the growing importance of thorough referencing and selection processes. Nishma Parekh, the director of referencing at Goodlord, noted that the current market conditions make getting tenant selection right the first time more critical than ever, particularly because it has become harder to reverse a poor match once a contract begins. The industry is currently in a state of adjustment as participants handle the removal of previous eviction pathways and the reality of increased operational costs.
