Letting agent fees in London: what landlords pay and how much you could save

Going by the fees they publish, London letting agents charge between 12% and 20.4% of the rent for full management once VAT is added. On the London average rent of £2,332 a month, that's the difference between about £3,360 and £5,710 a year: roughly £2,350 for broadly the same job.

The biggest names cost the most, but the gap between agents in the same area can be just as wide. Here's what London agents charge, what the headline rate leaves out, and what to check before moving.

What London agents charge for full management

We found current published fees for 11 agents with London branches. We've added VAT to each one. Most landlords can't reclaim VAT on residential lets, so the VAT-inclusive figure is what you actually pay.

• Big-name agents: 18% to 20.4%. Five agents with central London branches, including some of the best-known names, charge 18%, 19.8% or 20.4%, and one adds a £48 monthly compliance charge on top.
• Local independents and franchises: 12% to 18%. Six agents with branches in places such as Croydon, Enfield, Harrow, Sutton and West Norwood publish fees in this band, most of them at 12% or 14.4%.

The spread inside one area can be as wide as the spread across the city. In Harrow, two agents publish full-management fees of 12% and 18% including VAT. And one big name front-loads its fee: 20.4% in the first year, falling to 18% or 19.2% after that.

What the gap costs on a London rent

Here's what each level costs on a home let at £2,332 a month, the London average in August 2026:

• 12%: about £280 a month, or £3,358 a year.
• 14.4%: about £336 a month, or £4,030 a year.
• 18%: about £420 a month, or £5,037 a year.
• 20.4%: about £476 a month, or £5,709 a year.

Moving from the top of the range to the bottom saves about £2,350 a year, or nearly £11,750 over five years before rents rise. Even among the big names, the gap between 18% and 20.4% is worth about £1,060 a year in Kensington and Chelsea, where the average rent is £3,690.

The headline rate isn't the whole bill

London agents add a wide range of extras on top of the percentage. Ask about each of these before you compare:

• Tenancy paperwork fees, which run to £385 or £450 at two of the big names
• Monthly compliance charges, up to £48 a month (£576 a year) at one agent
• A fee for serving the yearly rent increase notice, from £30 to £300 among the big names
• Commission on contractor invoices and major works
• A higher rate in the first year, or a minimum annual fee

Renewal fees deserve a second look as well. Since 1 May 2026, tenancies roll on from month to month, so a fee tied to a 'renewal' may have nothing left to attach to. Our guide to exit fees and ongoing commission explains what to look for.

London rules to check before you switch

Changing agent doesn't change your legal duties, but three points decide how smooth the move is in London.

• Borough licensing. Licensing varies by borough. Newham and Waltham Forest license privately rented homes across almost the whole borough, boroughs including Brent, Croydon, Enfield, Haringey, Lewisham and Redbridge run selective licensing in parts, and most inner and east London boroughs also license smaller HMOs. Check your borough's scheme for your exact address.
• If your agent holds the licence. A licence can't be transferred, so if your agent is the named licence holder, speak to the council before you give notice. A new application takes weeks.
• The landlord register. Registration for London properties opens on 15 July 2027 and closes on 14 October 2027, at £65 per property per year. Registering is the landlord's job, not the agent's, so keep your own copies of your certificates whoever manages the property. Our Renters' Rights Act guide covers the rest.

How to compare quotes like for like

1. Convert every fee to include VAT.
2. Ask for the full schedule of fees, not just the headline rate.
3. Work out the yearly cost on your own rent, extras included.
4. Check the exit terms: notice period, exit fee, and any commission on tenants the agent introduced.
5. Ask who will hold the deposit, and how it moves if you leave.

If you already have an agent, the same sums tell you whether switching pays. Our 12-week switching plan walks through the move, and the handover checklist lists the 31 things your old agent should give you.

See what letting agents charge in Birmingham, Manchester, Leeds and Sheffield.

How we gathered these figures

We used the full-management fees that 11 agents with London branches publish, adding VAT where an agent quoted it separately. We checked the local agents' fee pages in October 2026. For the five big names we used fee schedules compiled in July 2026 by The Independent Landlord, each sourced to the agent's own page. Many agents only quote on request, so treat this as a guide to the spread, not a survey of the whole market. Rents come from the ONS Price Index of Private Rents for August 2026. Fees change, so check an agent's current schedule before you decide.

This guide covers England and is general information, not legal advice. Fees were checked in October 2026.