According to the report, landlords renting their properties through high street letting agencies pay renewal fees of up to £1 billion annually. On average, these renewal fees account for approximately 8.5% of the rent, posing a significant expense for landlords.

Hello Neighbour refers to these fees as "money for old rope" as they do not yield any practical service or value. Instead, these costs are frequently passed on to tenants, leading to an increase in rental prices.

Phil Shelley, Chairman of Hello Neighbour, stated, "High street agencies have long been taking advantage of landlords, charging unfair fees, especially when it comes to renewals. It's mind-boggling that a landlord has to fork out such an amount every time a tenant chooses to stay in their property for another year. It's absurd that a landlord possessing a good property people are willing to continue living in is being penalized."

However, abolishing renewal fees could have some implications for the rental market. If landlords lose this source of income, they might seek profits through other means, such as increasing rent or reducing property maintenance. Additionally, letting agencies might find other avenues to generate revenue, such as increasing tenant deposits.

Hence, the elimination of renewal fees needs to be approached with a well-thought-out policy and proper regulation. Governments can implement relevant legislation to restrict high renewal fees charged by letting agencies and strengthen oversight of the rental market to safeguard the rights of both landlords and tenants. Landlords should also be aware of their rights and responsibilities, opting for reputable letting agencies to avoid unfair charges.

With the advancement of digital technology, an increasing number of online rental platforms and property technology companies are emerging. These companies offer more convenient and transparent rental services, providing landlords and tenants with more choices.

For example, some online rental platforms offer free property listing and rent collection services, while some property technology companies utilize artificial intelligence to provide more accurate property recommendations and rent evaluations. These emerging rental models and technologies are expected to reshape the traditional rental market, offering landlords and tenants more opportunities and benefits.