Letting agents could face a further squeeze on rental stock as landlords prepare for another annual charge under the government’s new rental property register, details of which were announced earlier this month.
Landlords will generally pay £65 a year for every occupied rental property when the registration system rolls out across England.
On its own, the fee is relatively modest. But there are warnings that another recurring cost could tip the balance for landlords already considering leaving the private rented sector.
For agents, further landlord exits could mean fewer instructions and tighter rental supply. Tenants could also face greater competition for available homes.
The warning comes as rents remain elevated. Average private rents in England reached £1,459 a month in August, up 4% year on year, according to the Office for National Statistics.
The new register starts its regional rollout in the West Midlands on 15 December. Other parts of England will follow during 2027.
A landlord with five properties would pay £325 annually under the scheme. Someone with 10 properties would face a £650 yearly bill.
Another cost for landlords
Elliot Castle, CEO of We Buy Any Home, argues that the significance of the fee lies in its arrival alongside other costs and regulatory changes.
He said: “A £65 fee viewed in isolation may not sound enough to make somebody sell, but landlords do not experience it in isolation.
“It arrives alongside mortgage costs, taxation, maintenance, safety requirements and wider regulatory changes.”
Castle believes the latest requirement could become the “final nail in the coffin” for some landlords considering selling.
Any impact on rental supply would depend on who buys those properties.
Homes sold to another landlord would remain in the private rented sector. But properties bought by owner-occupiers would reduce the number of homes available to tenants.
If landlord exits continue to outpace new investment, agents in affected markets could find themselves competing for a smaller pool of rental instructions.
Tenants could also face greater competition in areas where demand already exceeds supply.
Castle said: “A policy designed to protect renters must not inadvertently make it harder or more expensive for them to find a home.
“The Government must monitor whether responsible landlords begin leaving the sector and be prepared to act if registration becomes another factor reducing rental supply.”
New compliance task for agents
The changes will also create another compliance consideration for letting and managing agents.
Landlords will need to register themselves and each qualifying occupied property during their regional registration window.
They must provide property and tenancy information. This includes details covering requirements such as gas safety, electrical safety and energy performance.
Agents can help landlords provide some of the information. However, responsibility for starting and completing registration remains with the landlord.
The government says the database will give councils greater visibility of the private rented sector and help identify non-compliance.
Failure to comply can result in a civil penalty of up to £7,000.
Repeated or continuing breaches can attract penalties of up to £40,000. The £40,000 maximum therefore does not apply automatically when a landlord initially misses a deadline.
Castle said: “We absolutely welcome legislation that protects tenants from rogue landlords and helps councils act against unsafe or poorly managed properties.
“However, policymakers must also recognise the cumulative financial and administrative burden being placed on responsible landlords.”
