Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.

Letting Agent Complaints Surge 47% as Regulatory Demands Grow

Complaints against UK letting agents increased by 47.4% in 2025, rising to 4,220 from 2,863 the previous year, according to analysis by tenant onboarding platform Propoly. The most common issues reported were related to service management, handling of holding deposits, and rent payment processing.

The data shows an accelerating trend, following a 19.6% increase in complaints between 2023 and 2024. Despite the higher volume, letting agents resolved 53% of complaints at an early stage in 2025, compared with 50% in 2024.

The rise in complaints comes as the sector faces ongoing concerns about landlord confidence in letting agents, with previous surveys indicating trust issues within the landlord-agent relationship. The report notes that the increase in complaints coincides with expanding responsibilities for letting agents and growing compliance and administrative workloads.

The implementation of the Renters’ Rights Act is expected to further increase complaint volumes as tenants become more aware of their rights and legislative changes take effect across the rental sector. For landlords, the trend highlights potential risks to rental income continuity and void periods.

Propoly’s analysis suggests that streamlining administrative processes, particularly tenant onboarding, will be necessary as agents adapt to new regulatory requirements. The property sector is also experiencing broader pressures, with property company insolvencies reaching decade highs and agents reassessing operational costs.