THE PROPERTY FILTER TAKE
Propertymark says landlord licensing fees can now exceed £1,000 per property in some areas and wants councils to publish the full five-year cost of every scheme.
In practice, a licence fee is a fixed cost that either eats into your yield or ends up in your tenants' rent, so the case for transparency cuts both ways.
You may wish to check whether a scheme covers your area and respond to any open consultation before it closes, with your own cost and inspection evidence.
Rental licensing fees can now exceed £1,000 per property in some areas, and Propertymark wants councils to prove where that money goes. In a statement published on 23 September 2026, the agents' body called on councils in England and Wales to publish the full cost of every scheme.
What is Propertymark asking councils to publish?
Propertymark wants each council to publish the total projected cost of a scheme over its full five-year term (Propertymark, 23 September 2026). That figure should come with a breakdown of staffing, IT and legal costs. It also wants annual data on inspections, enforcement action, officer capacity and civil penalties collected.
The reasoning is simple. Councils cannot use licensing schemes to make a profit, according to the statement. Yet landlords and agents often get little information on how much licence income actually funds inspections.
The position paper behind the statement (22 September 2026) goes further. It proposes capping Stage One fees (the processing part of a licence) at 20% of the total, so most of the money funds inspections. It also proposes limiting schemes to a maximum of two consecutive five-year terms. Licensing here means selective licensing (most private rented homes in a designated area) and additional licensing (smaller HMOs, or houses in multiple occupation), both under the Housing Act 2004.
How much does licensing cost landlords in practice?
The paper lists selective licensing fees of £1,284 per property in North East Lincolnshire as of April 2026, £1,025 in Lambeth and £1,090 in Leicester. Wandsworth's additional licensing fee is £1,507, according to the same paper. For agents managing local portfolios, Propertymark says these costs "can quickly reach tens of thousands of pounds".
New schemes are still coming. Propertymark's round-up of live consultations (13 August 2026) listed a proposed five-year fee of £1,050 in Preston, closing on 11 October. Greenwich proposed £974 per property across 18 wards, closing on 12 October. Burnley proposed £774 for a first property, with its consultation running until 18 October.
On a single let, a four-figure fee spread over five years is a modest annual cost. But it repeats at renewal. If you run shared houses, our free HMO valuation calculator helps you test whether a licence fee changes the numbers on a deal.
What does this mean for you and your tenants?
Licensing is meant to protect tenants, and that is where Propertymark's evidence bites. Its paper, citing Guardian reporting, says around two-thirds of councils in England had not prosecuted a single landlord in three years. Councils in England receive an estimated 300,000 complaints about property conditions each year, the paper says. Over 84% of councils reported difficulty recruiting environmental health professionals, the paper adds.
Your tenants pay for this too. The paper warns that high fees often force landlords to choose between absorbing the cost or raising rents. If you are weighing that choice, our free stress test calculator shows how a higher rent or a lower margin affects lender coverage.
And the stakes for getting it wrong have risen in England, where the Renters' Rights Act 2025 applies. On 1 May 2026, the maximum civil penalty for operating without a required licence rose from £30,000 to £40,000 (Propertymark, 13 August 2026). Tenants can also seek a rent repayment order (a tribunal order to refund rent) of up to two years' rent.
The national PRS Database (the government's planned register of private landlords in England) will not automatically replace local licensing, Propertymark says. Its regional rollout is due to begin from late 2026. For a wider view of where licensing fits your plans, our property investment strategies hub covers the trade-offs. Scotland sits outside the scope of Propertymark's paper.
Key takeaways
Propertymark says landlord licensing fees can now exceed £1,000 per property in some areas of England and Wales.
It wants councils to publish the full five-year cost of each scheme, plus annual inspection and enforcement data.
Its paper proposes a 20% cap on Stage One processing fees and a maximum of two consecutive five-year scheme terms.
Consultations in Preston, Greenwich and Burnley were listed as closing on 11, 12 and 18 October respectively.
In England, the maximum civil penalty for an unlicensed property rose to £40,000 on 1 May 2026, after the Renters' Rights Act 2025.
Frequently asked questions
How much does a landlord licence cost?
Can councils make a profit from licensing fees?
Does the PRS Database replace selective licensing?
What happens if I let a property without a required licence?
Does this apply in Scotland?
