Editor's note: This brief was summarised by The Property AI Team from a report by Property Industry Eye. Read the original article for full details.
Propertymark calls for landlord licensing schemes to be abolished
Propertymark is calling for discretionary landlord licensing schemes to be scrapped once the new national Private Rented Sector (PRS) Database is fully operational. The trade body argues that existing local schemes impose unnecessary costs and administrative burdens on landlords and letting agents, and says the new national system offers a chance to simplify regulation and improve enforcement.
In a new position paper, The effectiveness of local authority landlord licensing schemes, Propertymark questions whether selective and additional licensing deliver sufficient benefits to justify their costs. It argues that councils should focus on identifying and tackling non-compliant landlords rather than requiring responsible operators to complete more paperwork.
Fees and enforcement concerns
Propertymark's research highlights selective licensing fees exceeding £1,000 per property in several areas, with additional licensing schemes costing even more. For landlords with larger portfolios, the charges can run into tens of thousands of pounds.
The trade body also raises concerns about councils' enforcement capacity. It cites evidence that around two-thirds of English local authorities had not prosecuted a landlord during the previous three years, despite councils receiving an estimated 300,000 complaints about property conditions annually. More than 84% of councils have also reported difficulties recruiting environmental health professionals.
Propertymark wants greater transparency over licensing income, saying councils should demonstrate how they spend fees on inspections and enforcement. It also proposes a national cap limiting initial administration costs to 20% of licensing fees.
Tim Thomas, Propertymark's senior policy and campaigns officer, said: "Landlords should be able to see a clear connection between the fees they pay and the improvements being delivered in their local housing market. The priority must be enforcement. A licensing system should not become an end in itself, particularly where councils already have extensive powers to identify and act against unsafe or poorly managed housing."
National database could replace local schemes
The first stage of the national PRS Database, known as the Register your rental property service, is scheduled to launch on 15 December 2026. The rollout will begin in the West Midlands before extending across England over the following 12 months. All landlords actively letting properties in England will eventually need to register.
Propertymark argues that councils should use the national database as their primary source of landlord and property information, ending repeated requests for information that landlords and agents have already submitted. It also wants councils to stop charging for duplicated data-entry and document-storage functions.
Other proposals include a single national application standard, greater use of intelligence-led enforcement, independent reviews of licensing schemes, greater investment in environmental health officers and a lead authority model that would reduce repeated checks on letting agents operating across several council areas. Propertymark also wants greater use of landlord accreditation and professional standards.
The organisation maintains that abolishing discretionary licensing would not mean weaker protection for tenants, arguing that the national database should help councils direct resources towards landlords who pose the greatest risk.
Source: Property Industry Eye