The introduction of the Renters’ Rights Act in 2026 is expected to lead to a significant increase in selective licensing schemes across England, with hundreds more likely to be introduced. This expansion will have important implications for landlords and letting agents, particularly in London where the majority of boroughs already operate such schemes and enforcement penalties have reached substantial levels.

Record growth in selective licensing schemes

Selective licensing schemes have been growing steadily, with 2025 marking a record year as 49 new schemes were announced. These schemes require landlords to obtain a licence from their local authority to rent out properties in designated areas, aiming to improve housing standards and tackle issues such as antisocial behaviour and poor property management.

London has been the most affected region, with 28 out of its 32 boroughs currently operating selective licensing schemes. This widespread adoption means that landlords and agents working in the capital must navigate a complex patchwork of regulations, which vary significantly between boroughs.

Challenges of compliance across multiple boroughs

Orla Shields, CEO of prop-tech firm Kamma, highlights the difficulties landlords face in complying with the differing requirements imposed by each local authority. She notes that it is possible to pass through sixteen different licensing regimes within a short journey across North London alone. This complexity increases the risk of non-compliance, which can result in substantial fines and legal consequences.

For smaller landlords and letting agents, the administrative burden and cost of ensuring compliance across multiple schemes can be particularly challenging. The variation in rules means that specialist compliance support is often necessary to manage licences effectively and avoid penalties.

Rising penalties and enforcement in London

London has already seen over £13 million in fines issued for licensing offences, demonstrating the seriousness with which local authorities enforce these regulations. The Renters’ Rights Act will further strengthen enforcement powers, including doubling the maximum period for Rent Repayment Orders from 12 to 24 months. This means landlords found renting out unlicensed properties could be required to repay up to two years’ worth of rent to tenants.

Additionally, the introduction of a Private Rented Sector Database will enable local authorities to identify unlicensed properties more efficiently. This database is expected to improve enforcement and reduce the number of landlords operating without the necessary licences.

New schemes launching in 2026

Sixteen new selective licensing schemes are scheduled to launch in 2026. Notable areas include Islington, which will begin its scheme next month, followed by Thurrock, Brent, Leeds, Havering, Salford, and Hackney. Landlords operating in these areas should prepare for the new requirements and ensure they apply for licences promptly to avoid penalties.

Implications for landlords and agents

The expansion of selective licensing schemes means landlords and letting agents must remain vigilant and proactive in managing compliance. Understanding the specific requirements of each local authority where properties are located is essential. Failure to comply can lead to significant financial penalties and damage to reputation.

Landlords should consider seeking specialist advice or using compliance services to navigate the increasingly complex regulatory environment. Staying informed about upcoming scheme launches and changes to legislation will help landlords maintain good standing and protect their rental income.

Upcoming support from The Landlord Association

In response to these growing challenges, The Landlord Association (TLA) is launching a new Trusted Partners Hub in the first quarter of 2026. This platform will feature verified and approved service providers selected 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 become TLA service partners.

This initiative aims to provide landlords with reliable access to professional services that can assist with compliance, property management, and tenant relations in an increasingly regulated rental market.