Great Yarmouth Council’s introduction of selective licensing across approximately 60% of its borough has reignited debate about the financial impact on landlords and tenants. Despite council assurances that the scheme will not increase rents, landlords and industry representatives warn that the new fees and regulations will inevitably push costs upwards and reduce rental supply.

Selective licensing and its costs

The council plans to impose selective licensing on 5,000 homes, charging landlords £694 per licence for a five-year period. While this fee is lower than some other councils, such as Croydon’s £1,250 charge, landlords with multiple properties face substantial expenses. For example, owning five properties in the affected area could mean nearly £3,500 in licensing fees alone, before any maintenance or other costs are considered.

Great Yarmouth Council maintains that these fees will not affect tenant rents, a position met with scepticism by landlords and industry experts who argue that such costs cannot simply be absorbed without consequences.

Industry response and landlord concerns

Paul Cunningham, chairman of the Eastern Landlords Association, has described the council’s stance as “deluded.” He highlights that the scheme has already contributed to rent increases and prompted some landlords to exit the market in the area. Furthermore, Cunningham points out that over 90% of respondents opposed the scheme during consultation, yet the council proceeded regardless, raising questions about the democratic process behind the decision.

From next week, landlords with unlicensed properties in the scheme area face fines of up to £40,000, adding further financial pressure and enforcement risks.

Council housing stock and enforcement inconsistencies

Adding to landlord frustration is criticism of the council’s own housing stock, which reportedly suffers from mould issues. Notably, the council exempts its properties from the selective licensing scheme it imposes on private landlords. This discrepancy highlights a perceived institutional arrogance, as the authority demands compliance and fees from private landlords while not subjecting itself to the same standards.

Such inconsistencies undermine the credibility of the scheme and fuel concerns that selective licensing is more about revenue generation than genuine housing improvements.

Economic realities of licensing fees

It is a fundamental economic principle that businesses pass on increased costs to consumers. Just as rises in minimum wage, fuel duty, or business rates lead to higher prices in shops and services, landlords will likely increase rents to cover licensing fees and other expenses. The council’s claim that licence fees will not affect rents assumes landlords operate as charities, which is not the case.

Landlords provide a service involving risk, maintenance, and regulatory compliance, all while seeking a return on significant capital investment. When new compulsory costs arise, landlords must either raise rents or withdraw from the market, both outcomes detrimental to tenants.

The broader impact of selective licensing

Selective licensing schemes, such as Great Yarmouth’s, are poised to become case studies in unintended consequences. As landlords leave the market due to increased costs and regulatory burdens, rental property supply diminishes. This reduction in available homes drives rents higher and limits tenant choice, directly contradicting the schemes’ stated aim of improving housing standards.

The approach allows councils to claim progress in raising standards while benefiting financially from licence fees and substantial fines. Meanwhile, tenants face fewer options and landlords are treated with suspicion, required to prove compliance repeatedly at significant cost.

What this means for landlords

Landlords must recognise that blanket selective licensing schemes impose financial and administrative burdens that cannot be ignored. The risk of increased rents or market exit is real, with tenants ultimately bearing the cost. Responsible landlords are unfairly penalised alongside those who genuinely neglect property standards.

A more effective approach would be targeted enforcement against genuinely poor landlords, using existing powers to address dangerous properties without imposing broad fees and bureaucracy on the entire sector. Without such reform, the private rental market risks significant contraction, harming all stakeholders.

Source: Based on reporting from Property118

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