Council admits huge new licensing fee may trigger rent rises

Council admits huge new licensing fee may trigger rent rises


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A council is launching a new licensing scheme for landlords of houses in multiple occupation (HMOs).

It claims the scheme is designed “to improve property conditions, strengthen management standards, and ensure tenants have access to safe, high-quality accommodation.”

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A statement from Bolton council says: “It is unacceptable that landlords cut corners in critical areas such as failing to obtain fire, gas, and electrical safety certificates or ensuring properties are safe.

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“Many landlords operate responsibly, but a substantial proportion of HMOs are poorly managed, unsafe and impact on the community.”

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In the past three years, the council has received 1,885 complaints about disrepair in rented homes, typically relating to fire safety, electrical and structural defects, overcrowding, cold and damp, and poor waste management and pest control. 

In the past 17 months the authority has issued eight fines to landlords for HMO related offences and served 11 prohibition orders linked to HMO safety and serious housing conditions.

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As larger HMOs, occupied by five or more people are already subject to licensing, this new scheme will mean that nearly all HMOs in Bolton will require a licence to operate legally.

It is expected that the new licensing will be fully operational in early 2027. 

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The fee for a five-year licence will be £1,211 per property, and the income from the licence fees will fund the costs associated with administering, running and enforcing the scheme.

In addition, Bolton is creating a new enforcement team. 

The authority continues: “Where properties need significant changes to meet these requirements, including structural changes, a period of up to three years will be given for newly licensed properties, thus avoiding any immediate impact on tenancies and give landlords time to plan and implement work.

“Some landlords may choose to pass on part or all of the additional costs to tenants via rent, but the long-term benefits are positive by improving the quality of housing stock, making local neighbourhoods safer, generating more local investment, and improve the health and wellbeing of residents.

“Good landlords will also benefit from rogue landlords being pursued and driven out of the market ensuring that everyone is operating to the same standards.”

Any HMO landlord failing to join or adhere to licensing requirements may be subject to court proceedings or issued with a civil penalty (fine) of up to £40,000.

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