Councils reap £327m from landlord licensing fees

Councils reap £327m from landlord licensing fees

0:01 AM, 17th March 2025, About a month ago 3

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Britain’s landlords have handed over an astonishing £327,737,160 to the top 50 local authorities through property licensing schemes, research reveals.

Proptech firm Kamma analysed public records of more than 389,000 licenced houses in multiple occupation (HMOs) to reveal the hefty financial load being placed on landlords.

London remains the centre of this revenue surge and is home to 60% of the 20 most lucrative councils.

Of these, Southwark stands out by raking in more than £23 million through its various initiatives.

Impact on the PRS

The firm’s Chris Morgan said: “This data shows the true scale of licensing fees and their growing impact on the private rental sector.

“With councils generating hundreds of millions from licensing schemes and enforcement efforts intensifying, landlords and agents must factor compliance costs into their business models.”

He added: “As more local authorities introduce new schemes, staying ahead of these changes is now essential.”

The new rules mean there’s no Secretary of State sign-off needed on selective licensing plans spanning more than 20% of a borough.

And Kamma says more councils will now roll out schemes more easily.

Council plans more schemes

The data shows that Waltham Forest council in London racked up the second highest figure with more than £18 million in fees.

Kamma highlights that the council has plans for two expansive borough-wide programmes in April and May which will boost its coffers even more.

The east London borough also boasts the highest tally of registered rental homes, with more than 24,000 properties on its books.

How much in fees?

Kamma’s findings spotlight 10 authorities each pocketing upwards of £10 million from these charges.

In Lambeth, landlords face the priciest mandatory scheme in the capital, shelling out £2,530 per dwelling, which has fuelled the council’s haul of more than £11 million.

Outside London, Nottingham emerges as a standout, accumulating more than £18 million from landlords there.

For landlords wanting to know how much their local council is generating in fees, Kamma has the data on its website.


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Markella Mikkelsen

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9:24 AM, 17th March 2025, About a month ago

It should read:
"Britain's tenants have handed over an astonishing £327m in fees".

TheMaluka

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11:07 AM, 17th March 2025, About a month ago

What really grates is that the fees are per property, regardless of the size, and hence rental income, of the dwelling. A studio at £500 per month is charged exactly the same as a ten room mansion at £5,000 per month.

Fred M BARRETT

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13:20 PM, 17th March 2025, About a month ago

This is really an annual tax on tenants. The landlord must surely just add it straight onto rent plus 10% for admin and 20% on top unless it can be offset like insurance and repairs etc

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