Labour-led council proposes over £1,000 per property licence fee
Preston council is consulting on a selective licensing scheme that would charge landlords £1,050 per property licence in three wards, citing poor housing conditions and health hazards in the private rented sector.
Preston council, under Labour leadership, is currently consulting on a selective licensing scheme affecting three wards. If formally approved, the scheme would impose a licence fee of £1,050 per property on landlords. This fee is split into two parts: £470 payable on application and £580 payable once the council is minded to grant the licence. The council has stated that no discounts or instalment payments will be offered.
The council’s justification for the scheme is based on evidence indicating that privately rented homes in these wards suffer disproportionately from poor conditions such as damp, mould, excess cold, disrepair, and other hazards. According to their stock condition modelling, about 16% of privately rented properties in Preston contain Category 1 hazards, the most serious health and safety risks under the Housing Health and Safety Rating System.
Details of the proposed licensing scheme and council rationale
The council spokesperson emphasised the goal of ensuring safe, warm, and well-managed homes for residents, particularly in areas with high deprivation and poor housing conditions. The scheme aims to take a targeted approach by focusing on wards with the greatest need, thereby improving standards and supporting healthier communities.
They also sought to reassure landlords who already provide good-quality accommodation, stating that the scheme is not designed to penalise responsible landlords but to create a level playing field by tackling poor practices where they exist. The council’s approach involves detailed evidence gathering to justify the selective licensing, reflecting a growing trend among local authorities to use licensing powers to address substandard housing in the private rented sector.
Selective licensing schemes require landlords to obtain a licence for each property, with fees intended to cover the council’s costs of monitoring and enforcement. However, the proposed fee of £1,050 is notably high compared to many other local authorities, raising concerns about the financial impact on landlords, especially those with multiple properties.
Context of selective licensing in the UK rental sector
Selective licensing has become a key tool for councils seeking to improve property standards and tackle antisocial behaviour in private rented housing. Since the introduction of these powers under the Housing Act 2004, many councils have implemented schemes with varying fee levels and geographic coverage.
Fees are meant to be cost-neutral, covering the council’s administration, inspection, and enforcement activities. However, rising fees and expanding schemes have sparked debate about the balance between protecting tenants and imposing financial burdens on landlords. The Preston proposal’s high fee reflects the council’s assessment of the scale of work required to address the poor conditions identified.
For landlords, selective licensing means additional compliance obligations including submitting detailed property information, undergoing inspections, and potentially facing penalties for non-compliance. The scheme also intersects with other regulatory requirements such as landlord licensing, property safety checks, and tenancy management standards.
Practical implications for landlords and letting agents
If the scheme proceeds, landlords in the affected wards will need to budget for the substantial licence fee upfront, as no payment plans or discounts are proposed. This could significantly affect the profitability of smaller portfolios or single-property landlords operating in these areas.
Letting agents managing properties in Preston will need to advise clients promptly about the scheme and assist with licence applications to ensure compliance and avoid enforcement action. The requirement to pay a substantial fee before a licence is granted may delay letting or renewals, so early engagement with the council’s consultation and application process will be important.
Landlords should also prepare for increased scrutiny of property conditions and management practices. The council’s emphasis on tackling Category 1 hazards means that properties will likely be inspected and expected to meet higher health and safety standards. This may require investment in repairs or improvements to avoid licence refusal or penalties.
Uncertainties and what landlords should watch for
The scheme is still at the consultation stage, so its final form and implementation timeline remain uncertain. Landlords should monitor the council’s announcements and respond to the consultation if possible to influence the scheme’s design or fee structure.
There is also uncertainty about how the council will enforce the scheme and what penalties will apply for non-compliance. It is unclear whether the council will offer any support or guidance for landlords facing financial difficulties due to the fees.
Landlords should check current official guidance and seek professional advice on compliance obligations and potential impacts on their portfolios. The broader regulatory environment continues to evolve, with ongoing reforms in landlord licensing and property standards likely to affect future costs and responsibilities.
What landlords should consider now
- Review whether any properties are located in the proposed selective licensing wards and assess potential financial impact.
- Engage with the council’s consultation to understand the scheme’s details and raise any concerns.
- Prepare for licence application requirements by gathering property documentation and planning for any necessary repairs.
- Consider the timing of licence applications to avoid delays in letting or renewals.
- Stay informed about enforcement policies and potential penalties.
- Consult letting agents or legal professionals for advice on managing compliance under the new scheme.
Supporting landlords through licensing changes with TLA
The Landlord Association (TLA) offers members access to practical compliance resources and guidance relevant to selective licensing schemes like Preston’s proposal. Through TLA membership, landlords and letting agents can access up-to-date information on licensing requirements, property standards, and enforcement risks.
TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help landlords organise property records, manage rental documentation, and keep evidence of compliance activity together. Features in testing include tools to record inspections, repairs, and communications, which are vital for meeting licensing obligations and demonstrating good management.
Exploring TLA membership and ORBIT BETA access can assist landlords in preparing for new licensing fees and requirements, helping to maintain compliance and reduce risks of enforcement action in areas with selective licensing schemes.
For more details, landlords can review TLA’s membership options and compliance resources tailored to licensing and property management challenges.
Looking ahead, landlords in Preston and elsewhere should anticipate further local authority licensing initiatives as councils seek to improve housing conditions. Early preparation and engagement with support organisations will be key to managing these changes effectively.
Sources: Landlord Today
TLA - The Landlord Association