KFH Restructures Landlord Fees: What You Need to Know
In a significant move that signals a broader shift across the UK lettings industry, Kinleigh Folkard & Hayward (KFH) has announced it is moving away from annual charges as part of a comprehensive landlord fee shake-up. The decision is being widely seen as a direct response to the sweeping operational and regulatory changes introduced by the Renters' Rights Act, and it could set a new benchmark for how letting agents structure their pricing models going forward.
For landlords who have long navigated the complexity of annual fee structures, this development marks a meaningful change in how their costs will be managed and predicted. As the rental market continues to evolve under new legislation, understanding what this shift means in practical terms is essential for any property owner currently letting or planning to let in 2025 and beyond.
Why KFH Is Scrapping Annual Charges
The core rationale behind KFH's decision is straightforward: to give landlords a clearer, more manageable cost structure at a time when the sector is under considerable pressure. The Renters' Rights Act has introduced a wide range of operational changes that affect how properties are managed, how tenancies are structured, and what responsibilities fall on the landlord versus the letting agent.
Annual charges, while predictable in one sense, can create cash flow challenges — particularly for landlords who may have properties sitting vacant, undergoing maintenance, or transitioning between tenancies during the billing period. By moving away from this model, KFH is essentially acknowledging that the old approach no longer fits the realities of a market reshaped by regulatory reform.
The new structure is designed to align fees more closely with the actual services being delivered, making it easier for landlords to understand exactly what they are paying for and when. This kind of transparency is increasingly valued in a market where landlords are already contending with higher compliance costs and tighter margins.
The Impact of the Renters' Rights Act on Landlord Costs
The Renters' Rights Act represents one of the most substantial overhauls of the private rental sector in decades. Among its most significant provisions is the abolition of fixed-term assured shorthold tenancies, the removal of Section 21 "no-fault" evictions, and the introduction of a new ombudsman system for the private rental sector. These changes have fundamentally altered the risk profile for landlords and have placed new demands on letting agents to provide more comprehensive management services.
For landlords, adapting to this new landscape involves not just legal compliance but also rethinking financial planning. The unpredictability around tenancy lengths, combined with stricter rules around rent increases and eviction grounds, means that fixed annual charges can feel increasingly misaligned with a business environment that now demands much more flexibility.
KFH's decision to restructure its fees is therefore not happening in isolation — it is a response to a market that has been fundamentally changed by legislation, and one that is forcing the entire industry to reconsider how services are priced and delivered.
What This Means for Landlords Working with KFH
For existing KFH landlord clients, the removal of annual charges could translate into real financial relief. Rather than paying a lump sum or fixed periodic charge regardless of activity, landlords will benefit from a fee model that more accurately reflects the level of service they are receiving at any given time. This is particularly relevant for landlords with multiple properties, where the cumulative effect of annual charges can be substantial.
The new approach also makes it easier for landlords to budget effectively. With costs tied more directly to activity and service delivery, property owners can forecast their expenditure with greater precision — an increasingly important ability as the broader economic environment continues to put pressure on property investment returns.
- Greater cost transparency across all lettings and management services
- Reduced financial pressure during void periods or tenancy transitions
- Better alignment between fees paid and services actually received
- Improved ability to plan and forecast landlord expenditure over time
- A more flexible model suited to the demands of the post-Renters' Rights Act market
A Wider Trend Across the Lettings Industry
KFH's move is likely to accelerate a trend that has already been gaining momentum across the lettings sector. As legislation raises the bar for compliance and service standards, there is growing pressure on letting agents to demonstrate the value they provide rather than simply relying on entrenched pricing models. Landlords are becoming more discerning customers, and many are actively comparing agents on the basis of fee transparency and value for money.
In this context, moving away from annual charges is also a competitive strategy. Agents who can offer flexible, transparent, and activity-based fee structures are better positioned to attract and retain landlord clients in a market where trust and clarity are at a premium. KFH, as one of London's most established independent estate and letting agents, is signalling that it intends to remain at the forefront of this evolution.
How Landlords Should Respond to Fee Structure Changes
If you are a landlord currently working with KFH or considering doing so, now is a good time to review your overall fee arrangements and ensure they are still working in your favour. Here are some practical steps worth taking in light of these changes:
- Request a full breakdown of the new fee structure from your letting agent or KFH representative
- Compare the total annual cost of the new model against what you were previously paying
- Review your compliance obligations under the Renters' Rights Act and ensure your agent is equipped to support you
- Consider whether your current management level — let only, rent collection, or fully managed — still suits your needs
- Speak to a property accountant or financial adviser about how the new fee model affects your overall investment calculations
Looking Ahead: The Future of Landlord Fees
The KFH announcement is a clear indicator of where the lettings market is heading. As the Renters' Rights Act beds in and landlords and agents alike adapt to the new regulatory environment, we can expect fee structures across the industry to become more transparent, more flexible, and more closely tied to genuine service delivery. The days of opaque annual charges that bear little relationship to the work actually undertaken are increasingly numbered.
For landlords, this is broadly positive news. Greater transparency means more control over costs, better ability to assess value, and stronger grounds for holding agents accountable to the services they promise. For letting agents, it raises the stakes — but also the opportunity to differentiate on quality and reliability rather than simply on price.
KFH's decision to restructure its landlord fee model is not just an administrative change. It is a strategic statement about the kind of agent it wants to be in a market that is demanding more from everyone involved. As the sector continues to adapt to the realities of the Renters' Rights Act, expect other agents to follow suit — and expect landlords to increasingly reward those who do.