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

Letting Agent Fees Rise as Renters’ Rights Act Impacts Landlords

Letting agent fees are rising following the introduction of the Renters’ Rights Act, with 23% of landlords reporting increased costs. A Goodlord poll of almost 250 UK landlords also found that half of respondents have experienced a greater compliance burden under the new legislation.

The Renters’ Rights Act, which came into force on 1 May, abolished Section 21 evictions. Landlords must now use Section 8 to regain possession, providing one of the specified legal grounds. For rent arrears, landlords are required to wait four weeks after serving a Section 8 notice before starting proceedings, which is double the previous notice period. Goodlord noted that court delays could further extend the process, with some Section 8 claims still awaiting hearings.

The survey also revealed that 25% of landlords are concerned about difficulties regaining possession from problem tenants. In response to these changes, 39% of landlords have introduced more cautious tenant vetting procedures, and 9% are investing more in tenant retention to reduce turnover.

Separate research from Goodlord highlighted ongoing concerns about fraudulent tenancy applications, estimating that tenancy fraud costs the private rented sector around £4.1bn each year. Between July 2025 and June 2026, Goodlord found 41 suspected fraudulent applications per 1,000.

The findings suggest that tenant selection and referencing are becoming increasingly important for landlords and letting agents as they adapt to the requirements of the Renters’ Rights Act and the removal of Section 21.