Letting agents and landlords face a growing licensing compliance burden as penalties under the Renters' Rights Act increase, and councils across England expand local schemes, Propertymark has warned.
The first phase of the Renters' Rights Act came into force on 1 May 2026, raising the maximum civil financial penalty for relevant Housing Act offences, including operating an HMO or other property without a required licence, from £30,000 to £40,000. Landlords who fail to licence a property can also face rent repayment orders, with councils and tenants able to seek repayment of up to two years' rent.
Liability for an unlicensed property can, depending on the circumstances, apply to those managing or controlling a property and to landlords higher up a rent-to-rent chain.
At the same time, councils across England are consulting on new and expanded selective and additional licensing schemes alongside Article 4 Directions affecting HMOs. Ealing, Preston, Burnley and the Royal Borough of Greenwich are among those consulting on licensing changes, with proposed fees ranging from hundreds of pounds to more than £1,000 per property.
Tim Thomas, senior policy and campaigns officer at Propertymark, said: "The regulatory landscape for the private rented sector is becoming increasingly complex, and the cost of getting compliance wrong is rising. Agents and landlords need to be absolutely clear about whether a property requires a licence, what conditions apply and who carries responsibility within the ownership and management structure.
"Licensing can play a role in tackling poor standards and helping councils identify properties that require intervention, but schemes must be evidence-led, proportionate and properly enforced. Responsible landlords and professional agents should not be faced with unnecessary duplication, excessive administration or a patchwork of requirements that makes it harder to provide much-needed homes.
"With the PRS Database coming forward, now is the time for central government and local authorities to work together to make regulation simpler rather than adding another layer of bureaucracy. A national system should help councils identify non-compliance and support responsible landlords to demonstrate that they are meeting their obligations, not require the same information to be submitted again and again."
Propertymark is calling for greater coordination between national and local regulation ahead of the UK government's planned regional rollout of the PRS Database from late 2026, which will introduce compulsory registration and an annual fee. The body supports a national register but says landlords and agents should not have to repeatedly submit the same information to different regulatory systems.
