Letting agents’ trade body Propertymark is urging its members and landlords to ensure they understand expanding local licensing requirements, as the financial consequences of non-compliance increase under the Renters’ Rights Act 2025.
The first phase of the Renters Rights Act boosted the maximum civil financial penalty for relevant Housing Act offences from £30,000 to £40,000.
This includes operating a House in Multiple Occupation (HMO) or other property without a required licence and failing to comply with licence conditions.
At the same time, councils across England are consulting on new and expanded selective and additional licensing schemes, alongside Article 4 Directions affecting HMOs.
Propertymark says the combination of growing local regulation, higher penalties and the forthcoming Private Rented Sector (PRS) Database makes it increasingly important that agents and landlords have a clear understanding of their obligations.
The consequences can extend beyond civil penalties. Liability for an unlicensed property can, depending on the circumstances, apply to those managing or controlling a property and landlords higher up a rent-to-rent chain.
Failure to obtain a required licence can also result in a rent repayment order, with councils and tenants able to seek repayment of up to two years’ rent in relevant cases.
Propertymark is also calling for greater coordination between national and local regulation. The UK Government intends to begin a regional rollout of the PRS Database from late 2026, with compulsory registration and an annual fee. Propertymark supports a national register but says landlords and agents should not have to repeatedly provide the same information to different regulatory systems.
Tim Thomas, Senior Policy and Campaigns Officer at Propertymark, says: “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.
“We are encouraging our members to engage with local consultations and tell us where new licensing schemes are creating additional costs, administrative burdens or risks to rental supply. This evidence is vital in ensuring regulation delivers better housing outcomes rather than simply increasing the regulatory burden.”
Ealing, Preston, Burnley and the Royal Borough of Greenwich are among councils consulting on licensing changes, with proposed fees ranging from hundreds of pounds to more than £1,000 per property. Several councils are also considering Article 4 Directions and additional HMO licensing.
