Propertymark urges scrapping local landlord licensing after PRS database launch

Propertymark urges scrapping local landlord licensing after PRS database launch

Propertymark has called for the removal of local landlord licensing schemes once the national Private Rented Sector (PRS) Database is fully operational, citing cost, duplication, and enforcement concerns for landlords and agents.

Propertymark’s intervention comes ahead of the PRS Database launch on 15 December 2026, which will require all landlords letting property in England to register. The trade body argues this national system will improve enforcement focus and reduce burdensome fees and administration linked to local licensing schemes.

The organisation highlights that many local authorities have not prosecuted landlords despite thousands of complaints and face recruitment challenges for environmental health officers. Propertymark proposes a national cap on licensing fee administration costs and greater transparency in how fees are spent.

Propertymark’s case against local landlord licensing schemes

Propertymark’s analysis reveals that discretionary local licensing schemes often impose significant fees on landlords and letting agents, particularly those managing larger portfolios. In some areas, selective licensing fees exceed £1,000 per property, with additional licensing schemes charging even more. These costs can quickly escalate into tens of thousands of pounds for landlords with multiple properties.

The trade body points to enforcement issues, noting that about 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 annually about property conditions. Furthermore, over 84% of councils report difficulties recruiting environmental health professionals, limiting their capacity to enforce standards effectively.

Propertymark argues that the new national PRS Database will provide local authorities with a comprehensive record of landlords and their properties, enabling more targeted, intelligence-led enforcement against higher-risk landlords. This database is expected to reduce duplication of data submission and administration, as councils should rely on the national system rather than requiring repeated documentation from landlords and agents.

Proposed reforms and standards for landlord licensing

Propertymark advocates for several reforms tied to the national database rollout. These include:

• Removal of discretionary local licensing schemes once the PRS Database is fully operational;
• Targeted enforcement focusing on landlords most likely to be non-compliant;
• Use of national data as the primary source for landlord and property information;
• Greater transparency on licensing fee usage, inspections, and enforcement outcomes;
• A national cap limiting the proportion of licensing fees spent on initial administration to 20%;
• Independent assessment and sunset provisions for licensing schemes;
• Increased investment in environmental health officers to improve enforcement capacity;
• Promotion of landlord accreditation and professional standards;
• Development of Private Rented Sector Charters setting out expected standards; and
• Introduction of a Lead Authority model to reduce repeated checks for agents operating across multiple council areas.

Propertymark stresses that scrapping local licensing schemes would not weaken standards or renter protections but would allow councils to concentrate resources on landlords who pose the greatest risks.

Context and implications for landlords and letting agents

The national PRS Database represents a significant step in centralising landlord and property information across England. For landlords and letting agents, this could simplify compliance by reducing the need to interact with multiple local licensing schemes, each with varying requirements and fees. However, the transition period as the database rolls out over 12 months may require careful management to ensure all properties are registered and local authorities adjust their enforcement approaches accordingly.

Landlords with larger portfolios stand to benefit most from the proposed removal of local licensing schemes, as they often face substantial cumulative fees and administrative burdens. The call for greater transparency on how licensing fees are spent may also lead to more accountable local authority practices, potentially improving the value landlords receive for these charges.

Letting agents operating across multiple council areas could see efficiencies through the proposed Lead Authority model, which aims to reduce repeated checks and streamline compliance processes.

Practical considerations and uncertainties for landlords

While Propertymark’s proposals highlight potential benefits, several uncertainties remain. The government’s response to these recommendations and the precise implementation timeline for scrapping local licensing schemes are yet to be confirmed. Landlords should monitor official guidance closely to understand their registration obligations under the PRS Database and any changes to local licensing requirements.

The effectiveness of the national database in enabling councils to identify and act against non-compliant landlords will be a key measure of success. Landlords should also be aware that local authorities may continue to impose other regulatory requirements beyond licensing, such as property standards and safety obligations.

Moreover, the recruitment and funding challenges faced by local authorities in enforcement roles may persist, affecting how swiftly and thoroughly non-compliance issues are addressed.

What landlords should do now

Landlords and letting agents should prepare for the PRS Database registration requirement by reviewing their property portfolios and ensuring all relevant information is up to date. It is advisable to check current local licensing obligations and fees, as these may still apply until any official removal of schemes is confirmed.

Maintaining clear records of licensing fees paid, inspections, and communications with local authorities will be important to track compliance costs and outcomes. Landlords should also stay informed about any announcements regarding national standards for licensing applications and fee caps.

Engaging with landlord trade bodies and monitoring government updates will help landlords anticipate changes and adjust their compliance strategies accordingly.

Supporting landlords through regulatory changes with TLA

The Landlord Association (TLA) offers members access to compliance resources and practical guidance to help navigate evolving landlord licensing and registration requirements. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to assist landlords and letting agents in organising property records, managing rental documentation, and recording key compliance actions such as inspections and licensing applications.

Through TLA membership, landlords can access up-to-date information on regulatory developments, including the PRS Database rollout and local licensing reforms. ORBIT’s features in testing include tools for tracking property compliance status and storing evidence of interactions with local authorities, which can be invaluable during transitions in licensing frameworks.

Exploring TLA membership and ORBIT BETA access can support landlords in maintaining organised, compliant portfolios amid the anticipated regulatory changes.

As the national PRS Database becomes operational, landlords should consider leveraging available resources to ensure they meet registration obligations efficiently and are prepared for potential shifts in local licensing enforcement.

Sources: Landlord Today