Complaints against letting agents and property managers rose 47 percent in 2025, with enquiries jumping to 4,220 from 2,863 the previous year. The Property Redress Scheme’s annual report warns that parts of the industry may not be fully prepared for the Renters’ Rights Act, increasing the risk of disputes when new rules take effect.
Resolution times improve despite surge
Despite the sharp rise in volumes, the scheme reduced average resolution times to 34 days, down from 39 days in 2024. More than half of cases – 53 percent – were resolved at the early resolution stage before formal adjudication, up from 50 percent the previous year.
Total awards to consumers reached £1.47 million in 2025, with £273,310 paid through early settlements alone – a 40 percent increase on 2024. The average complaint rate per member remained steady at just over 8 percent, suggesting professional standards are holding even as consumer awareness grows.
Membership remained stable at 19,051 firms, with 85 expelled for non-compliance – around 0.4 percent of the total.
Holding deposits and poor service top lettings complaints
The most common lettings complaints related to holding deposits, poor service and management, and disputes over tenancy payments and rent collection. Sales complaints centred on duty of care, misleading information, and disputes over terms and commission.
Leasehold and property management complaints remained among the most entrenched, focusing on poor management service, maintenance failures, and failure to provide relevant documentation.
Sean Hooker, head of redress at Property Redress, said: “The residential property sector is operating in a challenging and evolving environment. Economic pressures, reform and increased consumer awareness are all contributing to greater scrutiny.”
Hooker warned that while reform should bring greater clarity, “parts of the industry may not be fully prepared for implementation, increasing the risk of complaint where processes are not updated correctly.”
He added: “Communication remains critical. Where agents are transparent, proactive and responsive at an early stage, disputes are far more likely to be resolved quickly and proportionately.”
The findings follow Landlord Knowledge’s coverage of landlord redress cases highlighting the importance of agent accountability. With the Renters’ Rights Act approaching, the report suggests complaint volumes will continue rising as new obligations take effect.
What this means for landlords
- If you use a letting agent: Check they’re registered with a redress scheme and review their complaint history. The 47% surge suggests standards vary widely across the sector.
- Holding deposit disputes: These remain the top complaint category – ensure your agent follows the Tenant Fees Act rules strictly to avoid liability.
- RRA preparation: The warning that parts of the industry aren’t ready should prompt conversations with your agent about how they’re preparing for new requirements.
- Watch for: Complaint volumes expected to rise further as RRA takes effect – agents who fail to update processes will face increased scrutiny.
- Bottom line: A 47% complaint surge is a warning sign. Landlords should actively monitor agent performance rather than assuming compliance.
Editor’s view
The 47 percent jump in complaints tells two stories. On one hand, it reflects rising consumer awareness and economic pressures in the rental market. On the other, it’s a warning that agent standards are under strain. The report’s concern about RRA readiness is particularly pointed – landlords who assume their agent has everything in hand may find themselves exposed when new rules bite. Now is the time to ask uncomfortable questions.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 3 March 2026
Sources: Property Redress Scheme Annual Report 2025
Related reading: Rent protection insurance demand jumps 41% as landlords brace for RRA
