Peterborough landlords could face new licensing costs from January 2026 as the city council prepares to expand its regulation of houses in multiple occupation (HMOs). The proposed scheme would require a £1,100 five-year licence for all three- and four-person HMOs comprising two or more households, extending controls that landlords say will raise costs and reduce supply.
Council cites community concerns
The proposal follows a summer consultation in which 75% of residents supported greater control over HMO management and 65% backed wider licensing.
Councillor Christian Hogg, cabinet member for housing and regulatory services, said the council is “fully aware of concerns regarding poorly managed HMOs and the negative effects these can have on communities.” He added that the city’s selective licensing initiative has already improved private rental standards, and the new scheme aims to replicate those gains in the HMO sector.
The council estimates there are around 2,500 HMOs in Peterborough, up from 1,410 in 2011, but believes about 2,000 remain unlicensed, most of them three- or four-bedroom properties. Only 563 are currently licensed, alongside roughly 200 larger HMOs that already require mandatory licensing.
Landlords push back
Landlord groups argue the plan will add costs without tackling rogue operators. The National Residential Landlords Association (NRLA) and Propertymark both urged the council to reconsider, warning that compliant landlords will be hit hardest.
A local landlord responding to the consultation commented: “The council should be helping landlords who have problems with tenants who destroy property or don’t pay rent. Start a Problem Tenants Register that landlords can access and report issues.”
Trade bodies say extra fees could discourage investment and ultimately tighten rental supply, pushing rents higher across the city.
What happens next
If approved next week, the additional licensing will be delivered with Home Safe, which already manages the council’s selective licensing process. Applications and inspections will begin ahead of a January 2026 launch.
For buy-to-let investors, the message is clear: factor in the potential £1,100 licence cost and inspection requirements when assessing Peterborough yields. While the council argues the move will improve standards, many landlords see it as another expense in an environment of rising mortgage rates and energy costs.
Editor’s view
Peterborough’s plan reflects a growing national trend: councils expanding HMO licensing to raise standards and revenue. For landlords, it underscores the need for detailed local knowledge before purchasing multi-let properties. Will tighter regulation genuinely improve tenant outcomes, or simply drive responsible landlords out of the market and reduce much-needed housing supply?
By Ian Adams, Property Correspondent
Published 24 September 2025
Sources: Peterborough City Council consultation papers; NRLA statements; Propertymark response.
