Local landlord licensing schemes should be reviewed and potentially scrapped once England’s national landlord database is fully up and running, according to Propertymark.
Selective licensing can cost landlords more than £1,000 per property in some areas, while additional licensing schemes can come with even higher fees. Propertymark has now published a position paper examining landlord licensing across England and Wales, looking at the costs involved, how effective the schemes are and how councils enforce them.
The organisation argues that landlords and letting agents are facing significant costs and administrative work without clear evidence that licensing is improving enforcement against landlords responsible for poor housing conditions.
Landlord Fees Under Review
Propertymark’s senior policy and campaigns officer, Tim Thomas, said landlords should be able to understand how the fees they pay are being used and what improvements those payments deliver to the local housing market.
He said enforcement should remain the main focus rather than allowing licensing schemes to become a goal in themselves.
Propertymark supports strong standards across the private rented sector but believes regulation should be proportionate and effective. It also says landlords, renters and taxpayers should receive reasonable value from the money collected through licensing fees.
National Landlord Database
The government has announced that the first stage of the Private Rented Sector Database will launch in the West Midlands on 15 December. The registration service is then expected to be introduced across England over the following 12 months.
Once the system is fully operational, landlords who are actively letting properties will be required to register.
Propertymark wants local councils to use the national database as their main source of landlord and property information. It argues that councils should not charge landlords again for submitting information or storing documents that are already available through the national system.
The organisation has also called for a standardised national application process and a Lead Authority approach. This could help reduce repeated checks for letting agents operating across multiple council areas.
Improving Council Enforcement
Propertymark’s paper also raises concerns about the level of enforcement being carried out by local authorities.
Around two-thirds of councils in England reportedly had not prosecuted a landlord during the previous three years, despite local authorities receiving an estimated 300,000 complaints about property conditions each year.
At the same time, more than 84% of councils have reported difficulties recruiting environmental health professionals, potentially limiting their ability to investigate and tackle poor housing.
Propertymark is calling for councils to provide greater transparency over how licensing income is spent, particularly on inspections and enforcement. It has also proposed a national limit that would restrict spending on initial administration to 20% of licensing fees.
Other recommendations include independent reviews of licensing schemes, sunset clauses to ensure schemes do not continue indefinitely without evidence of their effectiveness, increased investment in Environmental Health Officers and more targeted action against landlords considered to pose a higher risk.
The organisation’s overall position is that licensing should support effective enforcement rather than simply create additional costs and administration for landlords who are already complying with their responsibilities.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property