A Labour-run council is facing backlash after proposing a sharp rise in landlord licence fees, almost doubling the charge compared to its previous pilot scheme. Under the earlier trial, the cost per licence was £500, but Hackney Council now wants to raise this to £925 for each property.
The council is consulting on plans to roll out two new licensing schemes in the private rented sector (PRS) from early 2026. These schemes are intended to last for five years and, according to Hackney, are designed to help raise housing standards across the borough.
The proposals include a borough-wide Additional HMO Licensing Scheme, which would apply to all houses in multiple occupation that do not already need a mandatory licence. Alongside this, the council is also looking to launch a Selective Licensing Scheme that would cover all privately rented properties, excluding HMOs, across 17 out of Hackney’s 21 wards.
If approved, landlords would be required to pay £925 per property, a steep increase compared to the £500 charged in the council’s earlier pilot scheme. This figure is also notably higher than licence fees in neighbouring boroughs such as Brent, Lewisham and Haringey, sparking concerns that Hackney landlords are being unfairly targeted.
The move has triggered a strong reaction from Propertymark, the lettings agent trade body, which has publicly criticised the proposals. The organisation described Hackney’s plans as excessive and unnecessary, urging the council to hold off until new national systems are put in place.
Propertymark argues that Hackney’s borough-wide approach risks duplicating the upcoming national PRS database, which will be launched once the Renters’ Rights Bill becomes law in the coming weeks. According to the trade body, this new system will already provide the oversight needed to improve standards, making Hackney’s plans premature and costly.
In its response, Propertymark stressed that local data shows problems such as serious hazards, complaints and anti-social behaviour are concentrated in certain wards rather than being spread evenly across the borough. Because of this, the group believes that more targeted and selective schemes would be more effective and represent better value for money.
The lettings body also highlighted its long-standing opposition to widespread licensing schemes since their introduction in 2006. Instead, it says a more practical framework would be to focus on education, proportionate enforcement, and targeting landlords who consistently fall short of required standards.
Propertymark has also encouraged councils to work more collaboratively with letting agents, landlords, and professional bodies. By building stronger partnerships with stakeholders, local authorities could develop long-term solutions that raise standards without relying solely on expensive licensing fees.
The organisation suggests that by providing landlords with access to training, advice and support, councils could secure greater compliance and higher housing standards. Recognising and rewarding landlords and agents who follow best practices would also help councils concentrate resources on dealing with those who cause the most problems.
One of the biggest concerns raised by Propertymark is that landlords will inevitably pass on the higher fees to tenants, leading to increased rents. At a time when tenants are already struggling with the cost-of-living crisis, this could make renting even less affordable in Hackney.
They also warn that landlords, particularly smaller ones, are already facing financial pressure from high mortgage costs and ongoing inflation. The introduction of steep licensing fees could force some landlords to exit the market altogether, reducing the number of rental properties available in Hackney.
With fewer landlords remaining in the PRS, tenants could face reduced choice and even higher rents. This, Propertymark argues, runs directly against the council’s stated aim of improving standards and affordability in the borough.
To ease the pressure, Propertymark has recommended that Hackney lower its proposed fees to bring them in line with neighbouring boroughs. It has also suggested offering discounts for landlords who use Propertymark-member agents or who manage energy-efficient properties, similar to successful schemes already in place in areas like Liverpool and Merton.
Overall, the row between Hackney Council and Propertymark highlights the growing tension between local authorities and landlords over how best to regulate the private rental sector. With the Renters’ Rights Bill about to reshape the national framework, critics say Hackney should reconsider its approach before burdening landlords and tenants with yet another layer of costs.
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