Letting agents raise fees following Renters Rights Act changes
Since the Renters Rights Act came into force in May 2026, nearly a quarter of letting agents have increased their fees to landlords, while compliance demands and possession procedures have become more complex.
A recent survey by Goodlord reveals that 23% of landlords have experienced higher lettings agency fees since the Renters Rights Act took effect. Half of landlords also report increased compliance work, reflecting the growing administrative burden on agents and landlords alike.
The abolition of Section 21 evictions means landlords must now rely solely on Section 8 notices to regain possession. This legal shift has introduced longer notice periods and more stringent grounds for possession, complicating the eviction process.
Impact of the Renters Rights Act on possession and compliance
The Renters Rights Act removed the no-fault eviction route under Section 21, requiring landlords to use Section 8 notices with specified grounds to regain possession. Since 1 May 2026, landlords must give a minimum four-week notice period for rent arrears before initiating court proceedings, doubling the previous requirement.
Delays in the courts have further extended the timeline for possession claims, causing frustration among landlords seeking to regain control of their properties. This has led 39% of landlords to adopt more cautious tenant vetting processes to reduce the risk of problematic tenancies.
Additionally, 9% of landlords are investing in tenant retention strategies to minimise turnover and avoid the costs and delays associated with evictions. The increased compliance workload includes ensuring all new tenancy agreements and procedures meet the new legal standards.
Fraud risks and tenant vetting challenges
Goodlord’s research also highlights the scale of tenancy fraud affecting the sector. Between July 2025 and June 2026, 41 tenancy applications per 1,000 were flagged for suspected fraud, contributing to an estimated £4.1 billion in losses annually. This underscores the heightened risks landlords face when selecting tenants.
The combination of tougher possession laws and increased fraud risk is prompting letting agents to raise fees to cover the additional time and resources required for thorough tenant checks and compliance management. Landlords should expect these costs to remain elevated as the sector adjusts to the new legal environment.
Practical considerations for landlords and agents
For landlords, the Renters Rights Act means eviction is no longer straightforward. The extended notice periods and court delays require careful planning and patience. Landlords must ensure that possession grounds are clearly documented and all procedural steps are strictly followed to avoid claim dismissals.
Letting agents are under pressure to provide enhanced compliance support, including advising on legal changes, managing documentation, and conducting robust tenant vetting. The increase in agency fees reflects these additional responsibilities.
Landlords with smaller portfolios may find the increased complexity challenging and could consider working closely with experienced agents to navigate the new requirements effectively. Investing in tenant retention and fraud prevention measures can reduce the likelihood of costly possession proceedings.
Uncertainties and what to monitor
While the initial months following the Renters Rights Act’s implementation have revealed significant operational impacts, some aspects remain uncertain. The pace at which courts will clear the backlog of Section 8 claims is unclear, and further procedural refinements may be introduced as the system adapts.
Landlords and agents should watch for government updates on tenancy enforcement and any guidance clarifying compliance obligations. The evolving legal landscape may also prompt further adjustments in agency fee structures and service offerings.
What landlords should do now
Landlords should review their tenancy agreements and possession procedures to ensure compliance with the new legal framework. It is advisable to maintain detailed records of all communications and notices served to tenants, as these will be critical if possession proceedings become necessary.
Engaging with letting agents who demonstrate a clear understanding of the Renters Rights Act and its operational challenges can help mitigate risks. Landlords should also consider strengthening tenant vetting processes and exploring tenant retention strategies to reduce turnover and avoid disputes.
Supporting landlords through regulatory change with TLA
The Landlord Association (TLA) offers members practical resources and compliance support tailored to the challenges arising from the Renters Rights Act. Through TLA membership, landlords and letting agents can access up-to-date guidance on tenancy law changes, possession procedures, and tenant vetting best practices.
TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help landlords organise rental documentation, record key actions such as serving notices, and monitor regulatory developments. ORBIT aims to streamline compliance management and provide a central hub for tenancy records, which is particularly useful given the increased administrative demands.
Members can explore TLA’s compliance resources and learn more about ORBIT BETA access to better prepare their portfolios for ongoing regulatory changes.
Looking ahead, landlords and agents should anticipate that fee structures and operational practices will continue to evolve as the sector fully adjusts to the Renters Rights Act. Staying informed and proactive will be essential to managing these changes effectively.
Sources: Letting Agent Today
TLA - The Landlord Association