The effectiveness of local authority landlord licensing schemes

Landlord licensing schemes are expanding across England and Wales, bringing increased cost and administration for landlords and letting agents. While intended to raise standards in the private rented sector, inconsistent enforcement and stretched local authority resources raise questions about their effectiveness.

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This position paper examines how effectively selective and additional licensing schemes are improving standards in the private rented sector, alongside the financial and administrative impact they can have on landlords, letting agents and local authorities.

Propertymark has considered licensing fees, enforcement activity, repeated scheme renewals, local authority capacity and the interaction with existing regulatory powers. It also explores alternatives including targeted enforcement, accreditation schemes and better use of the national Private Rented Sector Database.

Recommendations for reform

Propertymark is calling for a more proportionate approach that strengthens frontline enforcement while reducing unnecessary duplication and administration. Recommendations include greater investment in Environmental Health Officers, improved transparency around fees and enforcement activity, independent reviews before schemes are renewed, better use of the national PRS Database and greater recognition of landlords and agents already operating to professional standards.

Key findings

  • Around two-thirds of local authorities in England had not prosecuted a landlord in the previous three years, despite councils receiving an estimated 300,000 complaints about property conditions each year.
  • More than 84% of councils reported difficulties recruiting environmental health professionals, limiting their capacity for proactive enforcement.
  • Selective and additional licensing fees can exceed £1,000 per property, creating significant costs for landlords and agents managing larger portfolios.
  • Propertymark is calling for licensing fees to focus more heavily on inspections and enforcement rather than administration, including a proposed 20% cap on Stage One processing costs.
Download the position paper to read more

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