Landlords could pay hundreds of pounds in registration fees under Renters’ Rights Act

Landlords face a triple whammy of fees to register their properties under the Renters’ Rights Act.

As reported by The Telegraph, those in selective licensing areas could be required to pay hundreds of pounds to register with a selective licensing scheme, the Private Rented Sector (PRS) Database, and the PRS Ombudsman.

The government have previously claimed the fee for the database and Ombudsman will be “proportionate and good value”, however, the government have remained tight-lipped about when either will become operational.

Labour is making it hopelessly complicated to rent out a property

As previously reported, on Property118, the government previously hinted at combining the registration process for the PRS database and Ombudsman, but stopped short of confirming whether landlords will be required to pay separate fees for each scheme.

James Cleverly, Shadow Housing Minister, told The Telegraph that to reduce complications, the registration process should be consolidated into one system.

He said: “Labour is making it hopelessly complicated to rent out a property.

“At a time when people are struggling to find affordable places to live, the government should be helping landlords rent their properties out by providing a one-stop shop for registration.

“Instead, Labour is presiding over more fees and more layers of red tape, alongside the other measures in its Renters’ Rights Act that have already driven landlords from the market.”

Mr Cleverly also pointed out the hypocrisy of asking landlords to comply with new regulations, despite Chancellor Rachel Reeves admitting she broke housing law by renting out her family home without a selective licence, even though she campaigned last year for selective licensing to be imposed on her Leeds constituency.

Make sure costs remain reasonable and sustainable

Under the Renters’ Rights Act, all landlords will need to sign up for the database, which will include information about their properties that tenants can access.

If a landlord lets or advertises a property without it first being registered on the database, they can be issued with a civil penalty of up to £7,000 or a £40,000 fine if they provide fraudulent information to the database.

The government have not yet set out fees for the database and Ombudsman but claim they will be reasonable.

A Ministry of Housing, Communities and Local Government spokesman told the Telegraph: “We are taking steps to make sure costs remain reasonable and sustainable, and the services funded by these fees will bring substantial benefits to both landlords and tenants.”

What responsible landlords should know

The Renters’ Rights Act introduces several layers of registration, with associated fees for the PRS Database, the Ombudsman, and any existing selective licensing scheme. While much remains to be clarified, particularly around cost and timing, professional landlords can protect themselves by preparing documentation and systems now. Maintaining composure through preparation will help ensure compliance without unnecessary disruption or cost.

What this means for you

Expect multiple registration requirements until the government confirms whether systems will be consolidated.

The financial impact will vary depending on local licensing rules and portfolio size, so planning for potential cumulative costs is prudent.

Enforcement powers are substantial, with penalties for non-registration and incorrect data, making accuracy and record-keeping essential.

Practical steps (do now)

Compile current licence numbers, tenancy details, and property ownership documents to streamline future registrations.

Review local authority websites to confirm whether selective licensing applies to each property.

Keep digital copies of previous correspondence with licensing authorities and ensure all records are up to date.

Schedule time to review draft government guidance once published and note key compliance deadlines.

Inform letting agents and portfolio managers to align their processes with your compliance timetable.

Good practice that reduces stress

Taking early control of your records and understanding which registrations apply to each property will reduce administrative friction later. Landlords who approach these changes methodically will find that, once systems are in place, compliance becomes routine rather than disruptive. Staying organised reinforces professional pride and strengthens your position when dealing with tenants, lenders, or local authorities.