Bolton Council is introducing a new licensing scheme for houses in multiple occupation (HMOs), with the aim of improving safety, property conditions and management standards across the private rented sector.
The council says the new scheme will allow it to take a more proactive approach to identifying poorly managed properties and landlords who fail to meet their legal responsibilities. It is expected to be fully operational in early 2027.
Why Is Bolton Introducing the Scheme?
The council says the new licensing requirements are needed because concerns remain about the condition and management of some HMOs across the borough.
Over the past three years, Bolton Council has received 1,885 complaints about disrepair in rented properties. These complaints have included issues such as fire safety, electrical faults, structural problems, overcrowding, damp and cold conditions, waste management and pest infestations.
The council has also taken enforcement action against landlords. During the last 17 months, it issued eight fines relating to HMO offences and served 11 prohibition orders connected with serious safety and housing problems.
The new scheme is intended to strengthen the council’s ability to identify problems earlier and take action where landlords are not meeting the required standards.
More HMOs Will Need a Licence
Larger HMOs housing five or more people are already subject to mandatory licensing rules. Bolton’s new scheme will extend licensing requirements further, meaning that nearly all HMOs in the borough will eventually need a licence to operate legally.
The council says the scheme will cover properties where better oversight is needed to protect tenants and improve the overall quality of accommodation.
Landlords will need to understand the new requirements and make sure their properties meet the relevant standards once the scheme comes into effect.
Licence Will Cost £1,211
The proposed cost of a five-year HMO licence will be £1,211 per property.
According to the council, the income from licensing fees will be used to cover the cost of administering, operating and enforcing the scheme.
This means landlords with multiple HMO properties could face a significant additional cost once the wider licensing requirements are introduced.
The council is also creating a dedicated enforcement team to support the new system and investigate properties where there are concerns about compliance.
Landlords Given Time to Make Improvements
The council recognises that some properties may require substantial work before they can fully meet the new requirements.
Where significant improvements are needed, including structural changes, newly licensed properties could be given up to three years to complete the necessary works.
This is intended to give landlords time to plan and carry out improvements without creating an immediate disruption for existing tenants.
For landlords, however, the new scheme could still mean additional costs beyond the licence fee, particularly where properties require major upgrades to meet safety and management standards.
Could Rents Rise?
One concern for landlords is how the additional cost of licensing and property improvements will affect their investment returns.
Bolton Council acknowledges that some landlords may choose to pass some or all of the extra costs on to tenants through higher rents.
However, the council argues that the longer-term benefits should outweigh these concerns by improving the quality of rental housing, encouraging investment and making neighbourhoods safer.
For landlords, the impact will depend on the condition of each property, the cost of bringing it up to standard and the level of rent that can realistically be achieved in the local market.
Council Says Good Landlords Will Benefit
Bolton Council says the scheme is not intended to penalise landlords who already operate responsibly.
Instead, it argues that stronger enforcement should create a more level playing field by targeting landlords who fail to maintain their properties or comply with legal requirements.
The council believes that removing rogue landlords from the market could benefit responsible property owners by ensuring that all landlords are working to the same minimum standards.
Improved housing conditions could also help protect tenants from unsafe accommodation and reduce some of the wider problems associated with poorly managed rental properties.
Fines of Up to £40,000
Landlords who fail to obtain a required licence or do not comply with the scheme could face serious penalties.
Depending on the circumstances, enforcement action could include court proceedings or a civil penalty of up to £40,000.
The potential size of these penalties highlights the importance of landlords understanding the new licensing rules before the scheme becomes fully operational.
Landlords who own HMOs in Bolton should therefore keep track of the council’s updates and consider whether their properties are likely to require a licence under the new arrangements.
What Does This Mean for HMO Landlords?
The new licensing scheme represents a significant change for HMO landlords in Bolton, particularly those whose properties have not previously required a licence.
Landlords may need to budget for the £1,211 five-year licence fee, as well as any improvement works required to bring their properties up to the expected standards.
While the council is allowing additional time for major works in some cases, landlords should not wait until the scheme is fully implemented before reviewing their properties.
For tenants, the council hopes the scheme will lead to safer and better-managed homes. For landlords, it reinforces the importance of keeping properties compliant as local authorities take a more proactive approach to regulating the private rented sector.
With the scheme expected to launch fully in early 2027, HMO landlords in Bolton have time to prepare, review their properties and understand the costs and responsibilities that could come with the new licensing requirements.
Rightmove has taken a more cautious view of the UK housing market after newly listed properties recorded a sharper-than-usual fall in asking prices during August.
The property portal says the average asking price of a newly listed home fell by 2.0% in a single month. Although prices normally ease during August, this year’s decline is considerably larger than the 10-year average fall of 1.3% and is the biggest August drop recorded since 2018.
The latest figures have also led Rightmove to revise its forecast for house prices in 2026. The portal had previously expected average asking prices for newly listed homes to rise by 2% this year, but it now expects prices to remain flat or fall by as much as 2%.
August Brings a Bigger Price Drop
The fall in asking prices comes during a period when the number of homes available for sale has reached its highest level for this time of year in 12 years.
Rightmove says the combination of increased choice for buyers and the quieter summer holiday period has encouraged sellers entering the market to take a more realistic approach to pricing.
The average asking price is now 1.0% lower than a year ago, marking the largest annual decline since December 2023.
Rightmove property expert Colleen Babcock said the unusually large August fall suggests sellers are increasingly recognising the conditions they are facing and pricing their homes more competitively from the outset.
She also pointed to Rightmove’s analysis showing that sellers who set realistic asking prices are more likely to attract a buyer and successfully complete their move.
For some homeowners, accepting a lower offer may also be balanced by negotiating a lower price on the property they are hoping to buy next.
More Properties, Fewer Active Buyers
The increase in available properties is happening alongside relatively subdued buyer activity.
Rightmove says buying activity remains around 10% below last year’s level, although there has been a small improvement in recent weeks.
Buyer demand increased by 5% since 20 July, compared with a 2% decline during the same period last summer.
This improvement could suggest that some buyers are becoming more confident about making decisions rather than waiting for greater clarity over economic and political developments.
Rightmove says the change in government leadership and the decision to rule out property tax changes in the October Budget may have helped improve sentiment.
However, the portal stresses that it is still too early to know whether this improvement will continue into the autumn.
Could the Autumn Market Be Busier?
After a relatively quiet summer, Rightmove believes there could be an opportunity for a stronger housing market during the autumn months.
The summer period was affected by the usual seasonal slowdown, as well as other distractions that reduced activity. A return to normal routines could encourage more buyers and sellers to return to the market.
At the same time, buyers continue to face higher borrowing costs, which could limit how much they are prepared to spend.
Mortgage Rates Remain a Challenge
Mortgage costs remain an important factor affecting the housing market.
Rightmove’s daily mortgage tracker shows that the average two-year fixed mortgage rate has risen to 5.09%, compared with 4.92% a month earlier.
Higher mortgage rates can reduce affordability and make some potential buyers more cautious about moving forward with a purchase.
There are, however, signs that rates could have room to fall in the coming weeks. Any reduction could provide some support to buyers and potentially improve activity later in the year.
The outlook remains uncertain, though, with mortgage rates, geopolitical developments and the Chancellor’s October Budget all capable of influencing housing market confidence.
Rightmove Cuts Its 2026 Forecast
The combination of increased housing supply, weaker buyer activity and uncertainty around mortgage costs has prompted Rightmove to downgrade its expectations for the year.
Rather than forecasting a 2% rise, Rightmove now expects average asking prices for newly listed properties to either remain unchanged or fall by between 0% and 2% during 2026.
The change does not necessarily mean that property values will fall across every part of the UK. Local market conditions can vary considerably, and individual properties can still perform differently depending on location, condition and pricing.
Instead, the revised forecast reflects a more cautious view of the market as a whole.
What Does This Mean for Sellers?
The latest figures reinforce the importance of realistic pricing for homeowners looking to sell.
With more properties available and buyers still relatively cautious, sellers may face greater competition for attention.
Overpricing a property could result in it remaining on the market for longer, potentially requiring a price reduction later. Setting a competitive asking price from the beginning may give sellers a better chance of attracting serious buyers.
The current market could also encourage more negotiation. Sellers who are prepared to consider lower offers may be able to compensate by negotiating a better price on their onward purchase.
What About Buyers?
For buyers, the increase in available homes could provide more choice and potentially create greater opportunities to negotiate.
The weaker price outlook may also give some buyers more confidence that they do not necessarily need to rush into a purchase.
However, mortgage affordability remains a major consideration. Even if asking prices soften, higher borrowing costs can significantly affect the overall cost of buying a home.
Buyers therefore need to consider both the purchase price and the cost of financing when deciding how much they can comfortably afford.
A Market Still Waiting for Direction
Rightmove’s latest figures paint a mixed picture of the UK housing market. There are more homes available for sale, asking prices are falling faster than usual for August and buyer activity remains below last year’s level.
At the same time, recent buyer demand has shown some improvement, while there is hope that mortgage rates could ease and activity could pick up during the autumn.
For now, however, Rightmove’s decision to reduce its 2026 forecast reflects the uncertainty facing the property market.
With average asking prices now expected to remain flat or fall by up to 2%, sellers may need to be more realistic about pricing, while buyers could find themselves with greater choice and negotiating power as the year progresses.
The UK rental market is continuing to face a shortage of available homes as some landlords reduce their portfolios or leave the sector altogether.
The latest market snapshot from the Royal Institution of Chartered Surveyors (RICS) highlights ongoing concerns about the supply of good-quality rental properties, while taxation, regulation and affordability continue to influence decisions across the private rented sector.
Rental Demand Remains Weak
The RICS survey tracks sentiment among its members, with the latest figures showing that tenant demand was broadly unchanged in the three months to July.
The tenant demand net balance fell to -1%, compared with +12% in the previous survey. This points to a softer level of demand than seen earlier in the year.
The bigger concern, however, remains the limited supply of rental homes.
Landlord instructions remained firmly negative at -27%, with RICS members continuing to report that some landlords are cutting the size of their portfolios or exiting the rental market.
Landlord Numbers Continue to Affect Supply
The low level of new landlord instructions suggests that fewer properties are being added to the rental market. For tenants, a smaller choice of homes can make finding suitable accommodation more difficult.
RICS members have repeatedly raised concerns about the shortage of good-quality rental stock across the country. They also identify taxation, regulation and affordability as key factors affecting both landlords and tenants.
For landlords, higher costs and additional regulatory requirements can make some properties less attractive as long-term investments. This may encourage some owners to sell or reduce their portfolios instead of expanding.
Rents Expected to Keep Rising
Despite softer tenant demand, expectations for rental growth remain positive.
A net balance of +28% of RICS respondents expect rents to rise over the next three months, up from +25% in the previous survey.
The combination of restricted supply and expectations of higher rents highlights the pressure facing renters. With fewer homes available, asking rents can remain under upward pressure, particularly in areas where demand is stronger.
This can leave tenants facing a difficult market, with fewer suitable properties and continued pressure on rental costs.
Regulation Remains a Key Concern
Recent regulatory changes also remain a key concern among RICS members.
RICS Chief Economist Simon Rubinsohn said member feedback continues to highlight the effect of the latest regulatory changes, while falling new landlord instructions point to further pressure on supply.
The comments come as landlords face a changing regulatory environment and greater responsibilities under private rented sector reforms.
While stronger regulation aims to improve standards and give tenants greater security, landlords may also question whether the additional costs and obligations make property investment worthwhile.
What Could Happen Next?
The latest RICS figures suggest that rental supply remains one of the main challenges facing the UK housing market.
If landlord instructions remain weak, the shortage of available properties could continue. This may put further pressure on rents and make it harder for tenants to secure suitable homes.
Policymakers therefore face the challenge of balancing stronger tenant protections with the need to maintain a healthy supply of privately rented homes.
For landlords, the figures highlight the importance of considering costs, regulation and rental demand when deciding whether to hold, sell or expand a property portfolio.
The government says the Renters’ Rights Act strengthens protections against discrimination in the private rented sector.
Housing Minister Matthew Pennycook said the legislation targets both obvious and indirect discrimination during the lettings process.
New Protections
The Act makes it unlawful for landlords and letting agents to discriminate against prospective tenants because they receive benefits or have children. Breaches can result in fines of up to £7,000.
Labour MP Tanmanjeet Singh Dhesi asked whether landlords and letting agents should explain why applications are rejected, helping ensure compliance with the Equality Act 2010 and the Renters’ Rights Act.
Pennycook said the legislation extends existing Equality Act protections to people receiving benefits and families with children.
Local authorities will also have stronger powers to investigate and act against discriminatory practices.
The rules cover obvious practices such as “No DSS” adverts as well as less direct methods of preventing applicants from securing a tenancy.
Higher Standards for Landlords and Agents
The government also wants higher standards across the property sector. The Property Ombudsman already has a mandatory code for its letting agent members.
Later this year, a non-statutory code setting out minimum standards for property agents is due to be published, with legislation to make compliance compulsory also under consideration.
The planned Private Rented Sector Ombudsman will also be able to issue landlord guidance and codes of practice.
The government has previously suggested that the PRS Ombudsman could consider a landlord’s previous conduct when handling complaints.
What It Means for Landlords
Landlords and letting agents will need to take greater care when advertising properties, assessing applicants and making tenancy decisions.
Letting practices should be fair, consistent and compliant with the latest legislation, as discriminatory practices could lead to financial and reputational consequences.
The wider aim is to create a rental market where tenants are treated fairly and landlords and agents have clearer standards to follow.
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