A lettings platform has launched a campaign to allow landlords to break out of letting agency contracts, writing an open letter to Ministers which claims current agreements trap property owners in “excessive” fee arrangements.

Richard Jenkins (pictured), co-founder and chief executive of Hello Neighbour, estimates that combined management and letting fees can cost landlords up to 20% of annual rent, with some agents reporting average revenues exceeding £5,000 per transaction.

We believe renting property shouldn’t come with hidden fees, rigid contracts or obstacles.”

He argues these charges are driven not by improved service quality but by rent inflation, creating what he describes as a “restrictive market” that stifles competition and discourages property investment.

Jenkins says: “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.”

Savings re-invested

The firm’s proposal is to give landlords the right to exit agency contracts without punitive fees or unreasonable notice periods. Jenkins estimates this could save London landlords £2 billion annually. And its research shows that when landlords avoid excessive fees, they funnel savings into improving properties or expanding portfolios, which delivers benefits to tenants through more moderate rent increases and improved housing quality.

Speaking exclusively to The Negotiator, Jenkins says he is unsure what response the letter will receive but wants to at least ‘start the discussion’. He also suggests that, as the Renters’ Rights Bill looms, contract reform could provide the Government with something positive to give to landlords.

He concedes, though, that it may be too late to incorporate the reform into the current bill, but emphasises that his aim is to help the Government understand the restrictive nature of the current market structure and to ‘change lettings for good.’

Hello Neighbour has not yet received a response.