Letting agents are preparing to raise their fees. The trigger is the Renters' Rights Act (legislation passed in 2025 that, among other things, abolishes fixed-term assured shorthold tenancies and introduces periodic tenancies by default). New research from lettings technology firm Goodlord puts the tension in sharp focus: 59% of landlords already say high fees and poor value are their biggest frustration with their agent.

That figure comes from a survey of 2,650 agents, landlords and tenants, published in a report titled Is Renting Broken?. Only 6% of landlords reported being "very satisfied" with the value for money they currently receive, according to the same Goodlord data.

Why Agents Say Costs Are Going Up

The Renters' Rights Act creates new administrative obligations for letting agents. Abolishing fixed-term tenancies means agents must handle a higher volume of tenancy variations, periodic renewal administration, and updated documentation. Agents argue those extra hours have to be priced in.

That argument has some merit. The Act does add real process work. But the timing matters. Raising fees against a backdrop where the majority of your clients already think you are overcharging is a commercial risk, not just a PR one.

For HMO (House in Multiple Occupation) landlords running properties through a managed agent, the exposure is multiplied. A managed HMO with five rooms typically generates five separate tenancy agreements and more frequent room changeovers than a single-let. If your agent moves to a per-tenancy fee structure rather than a flat percentage, the cost impact on an HMO could be significantly higher than on a comparable single-let.

What This Means for Landlords Using Managed Services

Goodlord's report also flags that dissatisfied landlords are likely to respond in one of two ways: move to self-management, or exit the private rented sector (PRS) entirely. Either route has consequences. Self-managing an HMO is not straightforward. Licence conditions vary by council. Birmingham, for example, requires a named licence holder who is fit and proper and maintains specific fire safety standards. Manchester's additional licensing scheme covers three-plus unrelated tenants. Getting that wrong carries civil penalties of up to £30,000.

At the same time, rental price growth is showing signs of stagnating, according to data cited by PropertyWire alongside this story. Squeezed yields plus higher agent fees is a combination that will push some investors to recalculate whether their portfolio still stacks up.

The Goodlord data also shows that buy-to-let (BTL) lending has risen 18%, with remortgaging dominant. That means many landlords are already dealing with higher finance costs. Adding an unannounced agent fee increase on top is the kind of thing that tips marginal portfolios into loss.

Before You Accept a Fee Increase

Ask your agent to show you exactly which Renters' Rights Act obligations are driving the extra cost, and what additional hours they are estimating per tenancy. A legitimate increase should be backed by a clear service schedule, not a blanket percentage uplift citing the legislation as justification.

If you hold an HMO licence, check your licence conditions before switching agents. Some councils require the named licence holder to be updated if management arrangements change. That is an admin step that can delay a switch by weeks if you leave it late.