HMO landlords could pass licensing fee on to tenants through higher rents
12:01 AM, 21st August 2026, 4 weeks ago
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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.
23 comments on this article
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Member Since January 2015 - Comments: 1582 - Articles: 1
11:35 AM, 21st August 2026, About 3 weeks ago
Of course they will, and reclaim as an allowable expense.
Member Since June 2013 - Comments: 698 - Articles: 1
4:41 AM, 23rd August 2026, About 3 weeks ago
Reply to the comment left by Sandeep Patel at 09:58
unfortunately not really true as can only raise rent once a year, its subject to the rules of the tribunal appeal and market rents.
Member Since June 2013 - Comments: 698 - Articles: 1
4:44 AM, 23rd August 2026, About 3 weeks ago
Reply to the comment left by Reluctant Landlord at 10:28
unfortunately not really true as can only raise rent once a year, its subject to the rules of the tribunal appeal and market rents.
Member Since June 2013 - Comments: 698 - Articles: 1
4:45 AM, 23rd August 2026, About 3 weeks ago
Reply to the comment left by Frank URQUHART at 10:30
unfortunately not really true as can only raise rent once a year, its subject to the rules of the tribunal appeal and market rents.
Member Since June 2013 - Comments: 698 - Articles: 1
4:46 AM, 23rd August 2026, About 3 weeks ago
Reply to the comment left by Judith Wordsworth at 11:35
unfortunately not really true as can only raise rent once a year, its subject to the rules of the tribunal appeal and market rents.
Member Since March 2024 - Comments: 319
8:43 AM, 23rd August 2026, About 3 weeks ago
Reply to the comment left by Joe Bloggs at 04:41
What do you think creates market rents? Costs of doing business for all landlords operating in that market.
And there isn’t a landlord on here not aware that rent can only increase once in twelve months. Do you seriously think that prevents increasesd costs from feeding into the next rent rise when it’s due? I had five HMOs for twenty odd years. I NEVER increased rent more than once a year when the law allowed it. That certainly didn’t mean that licensing cost wasn’t a factor when rents were reviewed- and not difficult to increse the rent when ALL other landlords facing the same cost were doing the same.
Member Since June 2013 - Comments: 698 - Articles: 1
10:15 AM, 23rd August 2026, About 3 weeks ago
Reply to the comment left by Keith Wellburn at 08:43
the tone of these posts is that rents will rise in the short term, but what you are describing is mid to long term! LL should always raise rents to full market but even now many wont imo. the costs side is largely irrelevant to rent rises as it depends on the rest of the market. more significantly is hopefully many landlords exit creating real scarcity and only then will there be upwards pressure in rents but this is still capped by affordability. so unfortunately there is a lot of hopeful thinking here. and there is rent capping being brought in via the back door by the new procedure.
Member Since March 2024 - Comments: 319
10:40 AM, 23rd August 2026, About 3 weeks ago
Reply to the comment left by Joe Bloggs at 10:15
We perhaps have different views of mid to long term, but anything in the next twelve months is short term to me so I don’t see how the only once in twelve months restriction is relevant. And of course it is difficult to separate out individual costs when there is very much a scenario of multiple cost pressures in play.
Of course you can’t just set prices without regard to the market – but I still maintain that a significant new bill for all landlords of HMOs in one market area will influence rents within the first year of introduction.
I actually did it! I had student HMOs and used a specialist student letting agency that put a lot of effort and research into advising landlords of the specific rent level for their particular properties it had worked well for many years but when additional licensing was brought in I felt their recommended rents didn’t match the jump in the HMO room rates for other HMOs that were already on the market for the next academic year. I asked for my rents to be set a little higher and got them no problem.
Member Since June 2013 - Comments: 698 - Articles: 1
10:52 AM, 23rd August 2026, About 3 weeks ago
Reply to the comment left by Keith Wellburn at 10:40
if you tried to raise the rent above market rates under the new regime you would fail if they appealed. as someone else said – the control of the PRS is effectively nationalised.
Member Since June 2013 - Comments: 698 - Articles: 1
10:54 AM, 23rd August 2026, About 3 weeks ago
Reply to the comment left by Keith Wellburn at 10:40
as for short term – there is a lot of inertia and time lag in the PRS as well as unfair rules about rent rises so all this talk about putting up rents to cover costs is dreamland.