We've Called for Reform: Our Open Letter to Government on Lettings Market Fairness
At Hello Neighbour, we believe renting your property shouldn’t come with hidden fees, rigid contracts, or obstacles to growth. Yet every day, we hear from landlords facing steep charges and restrictive agreements that hold back investment and progress. That’s why we've taken action.
Last week, we sent an open letter to the Deputy Prime Minister (Angela Rayner) and the Minister of State for Housing and Planning (Matthew Pennycook), calling on the government to introduce simple, practical reforms that would make the rental market fairer and more flexible for landlords, tenants, and the housing system as a whole. The background to our stop renewal fees campaign is set out in the campaign explained.
The Challenge: Fees and Friction
Letting agents in the UK often charge landlords up to 20% of annual rent in combined management and letting fees. Renewal charges are common even when tenants remain in place. In some cases, agents now report average earnings of £5,000 per tenancy driven largely by rent inflation. You can compare letting agent fees for your own property using our calculator.
What’s more concerning are restrictive contracts that tie landlords to agencies with long notice periods and costly exit clauses. These practices limit choice, reduce competition, and discourage property investment.
Our Proposal: A Right to Leave, Without the Penalty
We’ve urged the government to introduce one key reform: Landlords should have the right to exit agency contracts without punitive fees or unreasonable notice.
- Cut landlord costs by up to £2 billion a year in London alone
- Encourage reinvestment into rental properties
- Drive better service and accountability across the sector
- Deliver indirect benefits to tenants through fairer pricing
Reinvestment Benefits Everyone
Our research shows that when landlords save on avoidable fees, they often reinvest, upgrading homes, growing their portfolios, or moderating rent increases. Reforming the way agency contracts work is not just good for landlords; it’s good for tenants and the housing system overall.
What's Next?
As the Renters' Rights Bill continues its journey through Parliament, we’ve made it clear: any true reform of the private rental market must support both tenants and landlords. We’re ready to partner with policymakers to help shape a rental market that is modern, competitive, and fair.
If you’ve experienced challenges with lettings fees or agency contracts, we’d love to hear from you. Your voice helps us keep pushing for change.
Let’s unlock a better rental future, because homes should work for everyone.
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