Letting agents are introducing new landlord charges for services previously included in standard management fees, as the additional administration created by the Renters' Rights Act reshapes how agencies price their work.
According to The Telegraph, some agencies now charge separately for compliance work, financial statements and administration linked to rent increases. KFH, one of London's larger agencies, now charges landlords £12 plus VAT for additional financial statements.
Some agencies are reportedly charging up to £300 for compliance audits, while agents have also introduced separate fees for completing paperwork when landlords issue rent increases.
The changes come alongside a reduction in traditional agency income. The move away from fixed-term tenancies under the Renters' Rights Act has cut the renewal fees and commissions that many agencies previously relied on, giving firms a dual incentive to introduce new charges elsewhere.
Data from Goodlord indicates that nearly a quarter of landlords surveyed have reported higher agency fees since the Renters' Rights Act took effect on 1 May 2026.
Chris Norris, of the National Residential Landlords Association, said: "Lots of landlords at the moment are fairly concerned because there are quite big, chunky sanctions attached to getting some of this stuff wrong. They rely on their letting agent in many cases to make sure that they are compliant and they're doing everything properly – and some will be cashing in on a lot of concern and confusion."
Norris added that some landlords could regard the practice as "underhand", while others may view additional fees as part of the cost of doing business in the current regulatory environment.
The British Landlords Association urged landlords to review their agency agreements carefully. While acknowledging that the reforms have increased administrative burdens on agents, a spokesman said: "Trying to recover increased operating costs through unexpected or questionable add-on fees risks damaging the trust between landlords and their agents."
Agents have defended the new pricing structures. Greg Tsuman, managing director of lettings at Martyn Gerrard, said: "Both agents and landlords are expected to do more paperwork to be compliant. If a landlord would like to outsource that, I think it's perfectly reasonable that the agent charges appropriately."
Tsuman added that landlords face the additional costs while profit margins are already under pressure from the wider regulatory changes brought in by the Renters' Rights Act.
KFH had not responded to a request for comment at the time of publication.
