Navigating the Rise of Low-Cost Letting Platforms: What London Landlords Need to Know

The Changing Lettings Landscape: Why DIY Platforms Matter

A recent 2026 survey reported by Letting Agent Today reveals a rising tide of concern among letting agents about the impact of low-cost, DIY platforms such as OpenRent. These platforms offer cheaper, faster services by cutting back on traditional support and compliance safeguards. While larger agencies feel confident continuing to offer comprehensive, full-service lettings, smaller agents face serious margin pressures and struggle to compete on price.

For London landlords—whether managing a single property or a diverse portfolio—these developments have practical consequences worth understanding. DIY platforms may seem cost-effective upfront but can carry hidden risks, especially around compliance and tenant management.

Compliance: The Hidden Cost of DIY Lettings

Maintaining compliance with legislation such as the Tenant Fees Act 2019, the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, and ongoing EPC (Energy Performance Certificate) requirements is non-negotiable. Letting agents traditionally carry the burden of ensuring these are met, reducing the landlord’s direct workload and risk.

DIY platforms often shift compliance responsibility onto landlords, who may lack the time or expertise to stay updated on ever-evolving rules. This can lead to costly fines, legal disputes, or tenancy issues down the line.

Practical Implications Across Landlord Profiles

• Single-Unit Landlords: While DIY routes may look attractive to save money, the risk of missing a compliance deadline or failing to carry out proper referencing can outweigh savings.
• HMO Owners: Given HMOs’ stricter licensing and safety requirements, full-service agents can better navigate complex regulations and ensure ongoing compliance.
• Portfolio Landlords: Managing multiple properties amplifies compliance complexity. Using an experienced agent can streamline operations and mitigate risk.
• Accidental Landlords: Those new to letting are particularly vulnerable to compliance pitfalls and tenant management challenges without professional support.

Pricing, Service Quality, and Tenant Relations

DIY platforms typically offer limited services such as basic advertising and referencing. They rarely provide comprehensive tenant vetting, rent collection, or dispute resolution services. This can lead to increased void periods, tenant issues, and ultimately lower rental yields.

Full-service agents justify their higher fees by delivering value-added services: in-depth market knowledge, legal expertise, proactive property management, and robust compliance oversight. For landlords prioritising long-term returns and peace of mind, these benefits often outweigh upfront cost savings.

Recommended Next Steps for London Landlords

1. Review Your Current Letting Arrangements: Assess whether your existing agent or platform offers robust compliance support and tenant management services appropriate to your property type and portfolio size.
2. Benchmark Local Market Pricing: Compare fees and service levels between DIY platforms and traditional agents in your borough to understand value propositions.
3. Emphasise Compliance and Risk Management: If using or considering DIY options, schedule a compliance audit to identify gaps and potential risks.
4. Communicate Clearly With Your Agent: Discuss how they differentiate their service from low-cost platforms, especially regarding compliance and tenant relations.
5. Adapt Your Strategy: Consider hybrid models where you self-manage some aspects but outsource compliance-heavy tasks to professionals.

How Rentals & Sales Can Support Your Strategy

Our expert team specialises in portfolio reviews, compliance audits, and pricing strategies tailored for London landlords. We help you navigate market disruptions by ensuring your lettings approach balances cost efficiency with robust compliance and tenant satisfaction.

Contact us for a comprehensive review to future-proof your investments and streamline your landlord operations.

Disclaimer: This article is for informational purposes and does not constitute legal advice. Landlords should consult qualified professionals for compliance and legal matters.