HMO landlords could pass licensing fee on to tenants through higher rents

HMO landlords could pass licensing fee on to tenants through higher rents

Exchange of property licensing documents with cash and paperwork on desk
12:01 AM, 21st August 2026, 2 days ago 11

A council has admitted a new licensing scheme for houses in multiple occupation (HMO) landlords could lead to them passing the cost on to tenants.

Bolton Council plans to launch a new licensing scheme for HMOs early next year, meaning nearly all HMOs in Bolton will require a licence to operate legally.

However, the council has admitted the £1,211 cost of the five-year licence could hit tenants in the pocket, with HMO landlords potentially passing the cost on through higher rents.

Pass on additional costs to tenants

In a press release, the council claim the long-term benefits of the licence will outweigh any short-term costs to landlords and tenants.

The press release said: “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”.

Councillor Sean Fielding, executive member for Adults and Community Housing Services at Bolton Council, said: “Most landlords act responsibly providing good, safe and secure homes for residents, yet there are some who flout the law, cut costs to maximise profits, and put people’s lives at risk.

“Minimum property and maintenance standards are there to save lives, and 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.

“Overcrowded HMOs can also damage once thriving communities, as tenants move on quickly and anti-social behaviour can flare up in the neighbourhoods.

“The new licensing will help tackle these issues, and when the council receives direct complaints, it will now have stronger powers to take action.”

£40,000 fine

According to Bolton council, in the past three years they have received more than 1,000 complaints about disrepair in rented homes,  typically relating to fire safety, cold and damp and overcrowding.

The council have warned any HMO landlords who fail to join the licensing scheme will face a £40,000 fine.


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Comments

  • Member Since November 2023 - Comments: 12

    7:20 AM, 21st August 2026, About 2 days ago

    Could pass it to tenants?

  • Member Since February 2023 - Comments: 3

    9:58 AM, 21st August 2026, About 1 day ago

    Reply to the comment left by Amjid Ali at 21/08/2026 – 07:20
    These people are insane …. “could pass it on?”
    All costs in running a property go towards the calculation of rent… its as simple as that… unless maybe where a property has no mortgage.
    The costs of
    Mortgage
    S24 (extra taxation)
    Repairs
    Insurances
    All Licensing costs
    Bills
    Agents fees….. etc etc

  • Member Since October 2023 - Comments: 243

    10:16 AM, 21st August 2026, About 1 day ago

    Its a grift, Here in Northern Ireland we have had landlord licencing for years.
    I have never seen the licencing system used for ANYTHING.
    Its just more money for the council to waste on nonsense that nobody wants.

  • Member Since March 2024 - Comments: 310

    10:25 AM, 21st August 2026, About 1 day ago

    “According to Bolton council, in the past three years they have received more than 1,000 complaints about disrepair in rented homes, typically relating to fire safety, cold and damp and overcrowding.”

    That statement says absolutely nothing about whether the homes were houses in single occupancy or actually HMOs and is a direct insight into the appalling abuse of power that can result from an inability to understand simple statistics and apply logic to a situation.

    Also the council acknowledges that the majority of landlords and properties are operating to a good standard. How about NOT putting the financial burden so heavily on them and using some of the potential fines from rogue operators to fund enforcement.

    These fees into four figures are excessive – landlords know what is reasonable as they have to buy in trades for inspections for gas and electrics. Lets say the £211 covers the inspection of the property – how the hell is the remaining thousand pounds per landlord justified for what is compiling an online database – nobody sent me a fancy gilt edged parchment I could frame when I got my licence from York council (who now charges considerably more than £1,211). Enforcement costs should fall on those flouting the rules.

    £750 all in absolute tops. And these councils all cry crocodile tears for tenants being supposedly fleeced by “greedy” landlords.

  • Member Since October 2013 - Comments: 1713 - Articles: 3

    10:25 AM, 21st August 2026, About 1 day ago

    With the government confirming more illegals will be sent to HMOs, it looks like councils see a lucrative gravy chain, funded by the taxpayer.

  • Member Since September 2018 - Comments: 3710 - Articles: 5

    10:28 AM, 21st August 2026, About 1 day ago

    Some landlords may choose to pass on part or all of the additional costs to tenants via rent.

    Some? Its a business cost so it gets passed on. Anyone who doesn’t is plainly stupid.

  • Member Since October 2024 - Comments: 22

    10:30 AM, 21st August 2026, About 1 day ago

    Not ‘could’, definitely will be charged the cost. No business simply absorbs costs, they are always passed on, or the business will fail. That’s the problem with the government and housing action/lobby groups, they want more legislation, hence more costs, but expect rents to drop. That can never happen.

  • Member Since March 2024 - Comments: 310

    10:39 AM, 21st August 2026, About 1 day ago

    Reply to the comment left by Keith Wellburn at 10:25
    Not forgetting the licence fees are exempt from VAT where VAT registered trades must add on 20% for any work including mandatory inspections to give the invoice total for the landlord to pay.
    Exposes these council fee levels as even more of an absolute rip off than would appear at first glance.

  • Member Since September 2018 - Comments: 3710 - Articles: 5

    10:42 AM, 21st August 2026, About 1 day ago

    Reply to the comment left by Keith Wellburn at 21/08/2026 – 10:25
    the point being the tenant complained and the council investigated. That’s exactly what should happen, so clearly the system works. The bad landlords are being dealt with.

    “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”.

    Agree – but the SL process is not the way of doing this.

  • Member Since October 2019 - Comments: 428

    10:58 AM, 21st August 2026, About 1 day ago

    If a council succeeds in fining a LL for a problem with the property then surely this would open the door for a tenant to go after a rent repayment order as most of the ground work has already been done!

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