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 Agents Highlighted as Key Compliance Experts for Landlords

A recent report by Property Industry Eye emphasises the increasingly vital role letting agents play in supporting landlords with compliance, particularly in light of the Renters’ Rights Act (RRA). The article notes that letting agents are responsible for helping landlords navigate a growing list of legal and regulatory requirements in the UK private rented sector.

The report states that the introduction of the RRA has brought significant changes, including the abolition of Section 21, a new mandatory Decent Homes Standard for the private sector, strengthened tenant protections, and updated court powers. These changes mean that landlords face greater risks if they do not comply with the law.

Letting agents are described as performing essential compliance tasks for every tenancy. These include ensuring valid Electrical Installation Condition Reports (EICR) every five years, maintaining Energy Performance Certificates (EPC) with at least an E rating, registering deposits within 30 days, serving the correct How to Rent guide, conducting Right to Rent checks, testing smoke and carbon monoxide alarms, and preparing legally compliant tenancy agreements. The article points out that missing any of these steps could previously have prevented a landlord from serving a valid Section 21 notice, and under the RRA, could jeopardise a possession claim entirely.

The report also highlights that many letting agents do not charge separately for their compliance work, often bundling it into a flat management fee. This work requires time, training, professional indemnity insurance, and ongoing monitoring of legislative changes. The article suggests that agents who do not itemise and charge for compliance may be undervaluing their expertise.

With the removal of Section 21, the report notes that all possession routes now depend on correct compliance. Errors in paperwork at any stage of a tenancy could cause a Section 8 claim to fail. The article also mentions that the property portal will make enforcement easier, increasing tenant awareness and landlord exposure.

The report concludes that letting agents who position themselves as compliance guardians can strengthen their relationships with landlords, while those who do not may be compared solely on fees and risk being replaced.