Propertymark’s latest position paper examines whether local authority landlord licensing schemes are achieving their stated aim of improving standards in the private rented sector. Selective and additional licensing schemes are expanding across England and Wales, placing significant costs and administrative demands on landlords and letting agents, particularly where requirements vary between council areas or repeat existing legal duties.

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.

We have responded to consultations from Bath and North East Somerset Council and Gosport Borough Council on proposed approaches to housing enforcement and financial penalties in the private rented sector. We support robust action where landlords or agents deliberately, seriously or repeatedly fail to meet their legal responsibilities. However, it must be proportionate, transparent and focused on improving compliance rather than simply increasing financial penalties.

Landlords who failed to register or obtain the correct licence accounted for almost all of the 3,198 fixed penalty notices (FPNs) issued by Rent Smart Wales in the 12 months to May 2026, highlighting the valuable role agents can play in supporting client compliance. All private landlords renting out domestic property in Wales must register with Rent Smart Wales and either employ a licensed agent or become licensed to manage the property themselves.

The first phase of the Renters’ Rights Act 2025 has been in force since 1 May 2026, but local regulation is continuing to develop alongside it. Councils across England are consulting on new selective licensing schemes and planning controls for Houses in Multiple Occupation (HMOs), creating further checks, costs, and responsibilities for agents and landlords.

A recent Upper Tribunal decision has underlined the importance of clear management agreements, robust oversight, and accurate licensing checks for landlords and property managers involved with Houses in Multiple Occupation (HMOs) after a landlord was cleared of responsibility for more than £20,000 in fines relating to an unlicensed rental property.

The private rented sector (PRS) is being reshaped by changing motivations and new financial pressures, which help explain the structural changes behind shrinking stock levels, higher churn, and new expectations around compliance and profitability. For agents, these insights help develop and position services to effectively address the needs of their clients in a shifting market.

The UK Government has announced that an expansion of its Rent Repayment Orders (RROs) pilot scheme will see the trial rolled out to 41 local authorities across England following early success in recovering public funds and deterring poor housing practice.

Hackney Council is consulting on plans to introduce two new five-year licensing schemes in the private rented sector (PRS) from early 2026, arguing that they will improve standards. Propertymark supports the aim of raising housing standards, but we strongly urge Hackney and other local authorities to rethink their approach. A healthy PRS is fundamental to meeting growing housing demand, and under-resourced licensing schemes too often end up penalising good landlords and agents while allowing poor practice to persist.

Landlords in Portsmouth are actively opposing the city's proposed selective and additional licensing schemes, arguing that these measures are burdensome and ineffective. Their concerns are echoed by Blackburn with Darwen Council's recent decision to halt a similar licensing initiative, due to fears it would reduce the availability of private rented homes. Propertymark regularly responds to consultations objecting to the introduction of licensing schemes because we strongly disagree that licensing is the best method to improve housing stock within the private rented sector.

Barking and Dagenham Council is set to implement a borough-wide selective licensing scheme, requiring all private rental properties to be licensed from 6 April 2025. The scheme is among the first to leverage a law change introduced by Housing Secretary Angela Rayner at the end of 2024, allowing councils to establish larger licensing schemes without seeking central government approval.

On 30 August 2024, the Scottish Government published a report outlining the progress of its short-term lets (STL) licensing scheme since its implementation in October 2022. Propertymark supports the introduction of STL regulation with the aim of bringing them in line with standards in the private rented sector, and we are encouraged by evidence suggesting the safety and quality of properties is beginning to improve.

Propertymark has responded to consultations about plans to introduce additional or selective property licensing schemes in Enfield, Reading, and Wandsworth. We have objected to all the proposals because we strongly disagree that licensing is the best method to improve housing stock within the private rented sector (PRS).

On Thursday 2 May 2024, Londoners will cast their votes for the next Mayor and 25 Assembly Members. With a population of over nine million, and the highest house sales and rental values in the country, London presents unique challenges. Propertymark has written to the candidates outlining our housing plan for London, highlighting key priorities for the next four years and our proposals for addressing the city’s crisis in housing availability.

Plans for statutory registration and licensing for all visitor accommodation in Wales have been announced with legislation expected to be introduced before the end of the year to address the negative impact second homes and short-term holiday lets have on the availability and affordability of housing for local people.

Middlesborough Council who issued the charges has defended it by saying each of the 52 flats in Linthorpe Hall 248 are eligible for the fee under their current selective licensing scheme, which began in 2019.