Liverpool council proposes complex licensing fees up to £995 per property

Liverpool council proposes complex licensing fees up to £995 per property

Liverpool City Council is consulting on a new selective licensing scheme with up to 12 different fees, reaching £995 per property, to replace the current system ending next March. The scheme covers the entire city and aims to address housing hazards through inspections and enforcement.

Liverpool’s Labour council is proposing what may be the most complicated and expensive licensing regime in the UK. The consultation on the new selective licensing scheme runs until October 2026 and would apply citywide, replacing the existing scheme that started in April 2022 and ends in March 2027.

Since the launch of the current scheme, the council has received over 56,000 licence applications and granted more than 48,000 licences. They have conducted over 19,000 inspections, identifying over 3,500 housing hazards and issuing more than 1,100 enforcement notices to landlords.

Details of the proposed licensing scheme and fees

The council’s consultation outlines three broad options for the new selective licensing scheme, although the exact details of these options have not been fully disclosed. What is clear is the proposal includes a complex fee structure featuring 12 different fees, with the highest fee reaching £995 per property. This represents a significant cost increase for many landlords compared to typical licensing fees in other parts of the country.

The consultation also seeks views on proposed licence conditions, fee discounts, and other operational aspects of the scheme. The council’s approach reflects an intention to use licensing as a tool to improve property standards and tenant safety across the city’s private rented sector.

Context of Liverpool’s licensing approach and national trends

Selective licensing schemes are used by local authorities in England to regulate private rented properties in specific areas, typically where there are concerns about poor housing conditions or antisocial behaviour. Liverpool’s scheme, covering the entire city, is unusual in its scale and complexity. The council’s data shows significant enforcement activity, indicating a focus on tackling substandard housing.

Across England, councils have increasingly turned to licensing as part of broader rental reform efforts, particularly following the introduction of the Renters’ Rights Act and other legislative changes aimed at improving tenant protections and property standards. However, Liverpool’s proposed fee structure stands out for its range and level, which may reflect the city’s particular housing challenges but also raises concerns about affordability for landlords.

Practical implications for landlords and letting agents

For landlords with properties in Liverpool, the proposed licensing scheme means potentially higher upfront costs and more complex compliance requirements. The variety of fees suggests that landlords will need to carefully assess which fee applies to each property, based on factors that may include property type, size, or condition. This complexity could increase administrative burdens for landlords and agents managing multiple properties.

Landlords should prepare for the possibility of increased licensing fees when budgeting for their portfolios. They should also review the council’s consultation documents to understand potential licence conditions and discounts, as these will affect ongoing compliance and operational costs. Early engagement with the consultation could help landlords influence the final scheme design.

Uncertainties and what landlords should watch

The consultation is ongoing until October 2026, and the final scheme details, including the exact fee structure and licence conditions, have yet to be confirmed. It remains unclear how the council will apply the different fees and what criteria will determine fee levels or eligibility for discounts. There may also be legal challenges or political changes that affect the scheme’s implementation.

Landlords should monitor updates from Liverpool City Council and official guidance to ensure they remain compliant once the scheme is finalised. They should also consider the impact of these fees in the context of other regulatory changes affecting the private rented sector, such as energy efficiency requirements and safety obligations.

What landlords should consider now

• Review the Liverpool City Council consultation documents to understand the proposed licensing options and fee structures.
• Assess the potential financial impact on your portfolio, including the highest proposed fee of £995 per property.
• Prepare for increased administrative work related to licence applications and compliance monitoring.
• Consider engaging with the consultation to provide feedback or raise concerns.
• Stay informed on wider regulatory developments that may interact with licensing obligations.

Supporting landlords with licensing compliance

Membership of The Landlord Association (TLA) offers practical support for landlords navigating complex licensing regimes such as Liverpool’s proposed scheme. TLA provides access to up-to-date compliance resources and guidance tailored to local authority licensing requirements. Members can also benefit from ORBIT, TLA’s new property management and compliance platform currently in BETA testing. ORBIT helps landlords organise property records, monitor licensing documentation, and keep track of key compliance actions, which is particularly useful when managing multiple properties under varying fee structures and licence conditions.

Exploring TLA membership can provide landlords and letting agents with the tools and information needed to manage licensing obligations effectively, reduce risk of enforcement, and maintain good tenant relationships. ORBIT’s developing features aim to streamline record-keeping and evidence retention, essential for demonstrating compliance with selective licensing schemes.

Review TLA’s landlord membership options and learn more about ORBIT BETA access to support your preparation for Liverpool’s new licensing regime and other regulatory changes.

Landlords in Liverpool and elsewhere should keep a close eye on the consultation outcomes and be ready to adjust their licensing strategies accordingly. Early preparation and good record-keeping will be key to managing the financial and administrative impacts of the new scheme.

Sources: Landlord Today