For landlords · 7 min read
London letting agent fees compared: what the big names publish
London letting agents usually charge two fees at once, which is why the headline percentage understates the true cost. Foxtons' published fee schedule gives a worked example of a 12-month managed letting at £1,000 pcm: 11% initial commission plus a 6% management fee, totalling £2,040 plus VAT — £2,448 including VAT, or about 20% of the year's rent. Full-service agents such as Hamptons, Knight Frank and Chestertons publish tiered structures instead, typically lettings-only, rent collection, and full management. The only fair way to compare is total cost across the whole tenancy, including VAT.
Frequently asked questions
How much do London letting agents charge?
Most charge an initial commission for finding the tenant plus an ongoing management fee. Foxtons' published schedule gives a worked example of 11% initial commission plus 6% management on a 12-month managed letting, totalling £2,448 including VAT on a £1,000 pcm property — about 20% of annual rent. Always confirm current fees directly with the agent.
Is 6% a good management fee in London?
It depends entirely on what else is charged. A 6% management fee alongside an 11% initial commission costs far more than 6% suggests. Compare the total cost including VAT across the whole expected tenancy, not the headline percentage.
Do letting agents charge less for multiple properties?
Often yes. Foxtons operates a sliding scale where the management percentage reduces for landlords with three or more managed properties, and Chestertons publishes a dedicated portfolio service above three properties. Portfolio rates are usually negotiable.
What is the difference between lettings-only and full management?
Lettings-only covers advertising, referencing and setting up the tenancy, then hands it to you. Rent collection adds collecting rent and chasing arrears. Full management adds repairs, inspections and compliance renewals, and is the only tier that includes someone attending the property.
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