Selective licensing schemes set to expand in 2026

2026 could see hundreds more selective licensing schemes introduced as the Renters’ Rights Act comes into force, prop-tech firm Kamma warns.

Last year marked a record-breaking period for selective licensing, with 49 schemes announced.

Kamma says London has been the worst affected, with 28 of the capital’s 32 boroughs now operating selective licensing schemes.

London has already seen more than £13 million in fines

Orla Shields, CEO of Kamma, warned that with more schemes expected to be announced in the coming months, penalties for non-compliance will continue to rise.

She said: “You could drive through North London in a couple of hours and pass through sixteen different licensing regimes. By the time you’ve learnt one set of rules, you’re already in another borough with completely different requirements.

“For a government focused on growth, the powers handed to local authorities make it extremely difficult for smaller agents and landlords to scale without specialist compliance support. Every council does things differently, and the cost of getting it wrong is rising fast.”

London has already seen more than £13 million in fines for licensing offences, and penalties are set to increase further under the Renters’ Rights Act. These include doubling Rent Repayment Orders to 24 months and the introduction of a Private Rented Sector Database, which Kamma says will “make identifying unlicensed properties far easier”.

Sixteen licensing schemes are already scheduled to launch in 2026, with Islington starting next month, followed by Thurrock, Brent, Leeds, Havering, Salford and Hackney.

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