HMO landlords could pass licensing fee on to tenants through higher rents
12:01 AM, 21st August 2026, 4 days 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.
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Member Since March 2024 - Comments: 314
11:01 AM, 23rd August 2026, About 1 day ago
Reply to the comment left by Joe Bloggs at 10:52
But the market rents will be heavily influenced by the attitude of landlords setting new rents as I have described. Rent increases for existing tenants follow in the next twelve months. Rents rise because, in a higher cost situation less landlords are frightened of ending up with an empty property because they are not prepared to accept the reduced profit a lower rent would produce and would perhaps even have the aim of vacant possession to sell up (which as you mentioned earlier would create a medium to long term upward pressure on rents due to scarcity).
Member Since March 2024 - Comments: 314
11:20 AM, 23rd August 2026, About 1 day ago
Reply to the comment left by Joe Bloggs at 10:54
NB – when you break it down, £2 a week per room on a 3 bed HMO over 5 years covers the license cost. There is a lot less inertia against the backdrop of the RRA, forthcoming EPC C, landlord register fees, income tax surcharge, threat of councils using fines as a cash cow.
If there was such inertia and very slow feed through how have rents in most places risen so sharply in recent years? Market rents are of course by definition what the market can bear and no more – but that is until the market changes to a new level. I certainly think rent levels are now more sensitive to landlords going for increases than in the past.
Remembering of course that HMOs generally have higher tenant turnover than other rental stock so there is potential for quick feed through as rooms become vacant.
Member Since June 2013 - Comments: 670 - Articles: 1
8:55 PM, 23rd August 2026, About 23 hours ago
Reply to the comment left by Keith Wellburn at <a href="https://www.property118.com/hmo-landlords-could-pass-licensing-fee-on-to-tenants-through-higher-rents/comment-page-3/#comment-208593"
; rel=”ugc”>11:20
a lot of assumptions. landlords are not a homogenous group and there is no certainty that they will rack rent their rentals. maybe those on forums will but thats not a typical landlord.
and ‘Market rents are of course by definition what the market can bear and no more – but that is until the market changes to a new level…’ – what makes you think that affordability will improve when there is so much graduate unemployment due to AI and the economy plus difficult renting to our bread and butter of foreign students who have no uk guarantors and we can no longer ask for 3 or 6 months rent upfront! we are finding very few decent applicants in south east. we have reduced many of our lets on re-letting to get some enquiries, so I dont agree with all the media that there is a surplus of demand – unless youre happy to take a huge risk in a v difficult environment in favour of bad tenants.