UK landlords are urging the government to ensure that any new regulatory databases introduced for landlord registration are efficient, cost-effective, and free to use. With millions of deposits currently held in existing schemes generating significant income, landlords argue that the costs of new compliance systems should not be passed on to them or tenants.

Background on Deposit Protection Schemes and Regulation

The government is moving towards imposing new regulations requiring comprehensive databases for landlords, including those deemed non-compliant. Currently, deposit protection schemes (DPS) hold approximately 4.7 million deposits, representing around £5.5 billion in cash, which averages to about £1,100 per tenancy. These schemes are responsible for safeguarding tenants’ deposits and ensuring fair handling at tenancy end.

Remarkably, only about 1% of these deposits—equating to £55 million—are subject to disputes. Despite the low dispute rate, the companies managing these schemes benefit financially by earning interest on the deposits held. Assuming a 5% interest rate, this could amount to an estimated £275 million annually, which is five times the value of disputed deposits.

Landlord Concerns Over New Database Costs

Given the substantial income generated by existing DPS providers, landlords are questioning the need for additional charges related to new regulatory databases. They argue that the government should leverage the existing infrastructure and financial resources of these providers to extend current landlord databases rather than creating costly new systems.

Landlords emphasise that any new regulatory databases should be provided free of charge to both landlords and tenants at the point of use. Introducing fees could ultimately lead landlords to pass these costs on to tenants through higher rents, which would be counterproductive to the policy’s intent.

Implications for UK Landlords and Agents

For landlords and letting agents, the introduction of new enforced regulations and databases could mean additional administrative burdens and potential costs unless managed efficiently. The call for proportionality in regulation highlights the need to balance tenant protection with practical, affordable compliance for landlords.

Utilising existing deposit protection schemes and their databases could streamline registration processes, reduce duplication, and avoid unnecessary expenses. This approach would support landlords in maintaining compliance without imposing undue financial strain.

Community Feedback and Next Steps

The Property118 community has raised these concerns to encourage government transparency and accountability in implementing new landlord registration systems. The hope is that the government will avoid creating a “cash cow” for preferred technology providers and instead collaborate with existing DPS suppliers to deliver cost-effective solutions.

Upcoming Support for Landlords

In related news, the Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest to join the hub.