Platform pushes for PRS reform to save landlords billions in fees

A property-tech platform has penned an open letter to Angela Rayner urging immediate reforms to tackle soaring landlord fees and restrictive letting agency contracts.

Hello Neighbour’s letter to the deputy Prime Minister and housing minister, Matthew Pennycook, demands action for an equitable and dynamic rental market for landlords, tenants and the broader housing ecosystem.

The letter highlights the financial burdens landlords face, with letting agents charging up to 20% of annual rent in combined management and letting fees.

It states: “Some agents now report average revenues of over £5,000 per transaction, driven not by better service, but by rent inflation.”

Landlords face steep charges

The firm’s chief executive and co-founder, Richard Jenkins, said: “We believe renting 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.”

He added: “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.”

Save landlords £2 billion in London

The letter goes on to say escalating costs fail to deliver proportional value.

These charges, coupled with restrictive contracts that impose steep exit fees and lengthy notice periods, are stifling competition and discouraging property investment.

Hello Neighbour’s letter says: “Landlords should be able to leave agency contracts without punitive fees or unreasonable notice.”

This reform, the company estimates, could save landlords £2 billion annually in London alone, unlocking funds for reinvestment into property upgrades or portfolio expansion.

Such reinvestment, the letter argues, would yield benefits for tenants through moderated rent increases and improved housing quality.

Most landlords will invest

The platform emphasises that a balanced approach, supporting both tenants and landlords, is vital for a thriving rental market.

The company’s research reveals that when landlords aren’t facing excessive fees, most will funnel those savings into improving properties or expanding their portfolios.

This not only supports national housing goals but also delivers ‘direct benefits for tenants in the form of either rental reductions or lower annual increases’.

By addressing these market inefficiencies, Hello Neighbour predicts a modernised rental sector that drives accountability and innovation among letting agents.

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