Propertymark is calling on the UK Government to commit to removing discretionary local landlord licensing schemes once the new national Private Rented Sector (PRS) Database is fully operational.
A new Propertymark position paper, The effectiveness of local authority landlord licensing schemes, examines the cost, effectiveness and enforcement of selective and additional licensing schemes across England and Wales.
While licensing can help raise standards and tackle poor housing, Propertymark argues that broad discretionary schemes can impose significant costs and administrative burdens on responsible landlords and letting agents without necessarily improving enforcement.
The UK Government has confirmed that the national landlord registration service, the first stage of the PRS database known as the “Register your rental property” service, will launch on 15 December 2026, beginning in the West Midlands before rolling out across England over the following 12 months. All landlords actively letting property in England will ultimately be required to register.
Propertymark says the new national infrastructure provides an opportunity to reduce duplication and allow councils to focus enforcement resources on landlords who pose the greatest risk.
Enforcement, not paperwork, should be the priority
Propertymark’s analysis highlights selective licensing fees exceeding £1,000 per property in several areas, with additional licensing schemes charging even more. For landlords and agents managing larger portfolios, costs can quickly reach tens of thousands of pounds.
The position paper also highlights concerns about enforcement capacity. Propertymark cites evidence that approximately two-thirds of local authorities in England had not prosecuted a landlord in the previous three years, despite councils receiving an estimated 300,000 complaints about property conditions each year. More than 84% of councils have also reported difficulties recruiting environmental health professionals.
Propertymark is calling for greater transparency over licensing income, with councils required to demonstrate how fees are being used for inspections and enforcement. It also proposes a national cap limiting the proportion of licensing fees spent on initial administration to 20%.
Tim Thomas, Senior Policy and Campaigns Officer at Propertymark, said:
“Landlords should be able to see a clear connection between the fees they pay and the improvements being delivered in their local housing market.
“The priority must be enforcement. A licensing system should not become an end in itself, particularly where councils already have extensive powers to identify and act against unsafe or poorly managed housing.”
National database should replace duplication
The PRS Database is intended to provide a national record of landlords and their properties, giving local authorities better information to identify and target non-compliance. Propertymark argues that councils should use the national system as their primary source of information rather than requiring landlords and agents to repeatedly submit the same documentation.
Where information is already held nationally, local authorities should not charge landlords again for duplicated data-entry and document-storage functions. Propertymark is also calling for a single national standard for what constitutes a complete application.
Ultimately, Propertymark believes discretionary local licensing schemes should be removed once the national database is fully operational.
The organisation says this would not mean weaker standards or reduced protection for renters. Instead, enforcement resources could be concentrated on landlords who are most likely to be operating outside the law.
A more proportionate approach
Propertymark is advocating:
Removal of discretionary local licensing once the national PRS Database is fully operational;
Targeted, intelligence-led enforcement of higher-risk landlords;
Greater use of national data to identify non-compliance;
Use of the national database as the primary source of landlord and property information;
Greater transparency over licensing fees, inspections and enforcement outcomes;
A national cap on the proportion of licensing fees spent on initial administration;
Independent assessment and sunset provisions for licensing schemes;
Greater investment in Environmental Health Officers;
Greater use of landlord accreditation and professional standards;
Private Rented Sector Charters setting out expected standards; and
A Lead Authority model to reduce repeated checks for agents operating across multiple council areas.
Propertymark says the success of the national database should ultimately be judged not by how many landlords register, but by whether it enables councils to identify and act against non-compliant landlords more effectively.
Tim Thomas added:
“The launch of the national landlord registration service is an important opportunity to reset how the private rented sector is regulated.
“Responsible landlords should not be required to repeatedly provide the same information to different authorities while councils struggle to find the resources to inspect properties and take action against rogue operators.
“The UK Government now has an opportunity to make the national database the foundation of a smarter enforcement system — using national data to identify risk, removing unnecessary duplication and directing resources towards landlords who are breaking the law.
“We support strong regulation and high standards, but regulation must be proportionate, effective and deliver value for money for renters, landlords and taxpayers.”