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Propertymark warns £40k penalties raise licensing risk


Propertymark says councils across England are widening landlord licensing and planning controls at the same time as the Renters’ Rights Act has lifted maximum civil penalties for key housing offences to £40,000.

In a fresh licensing briefing, the trade body said the first phase of the Act has left the licensing framework itself in place but made the cost of getting it wrong steeper. It also warned that the planned PRS Database must not force landlords and agents to submit the same compliance information twice.

For landlords, the timing matters because several councils are already consulting on new or replacement schemes for 2027 while the national database is still being prepared for regional rollout from late 2026. That means local costs and enforcement risk are rising before any simplification arrives.

Propertymark says the fine risk is rising before the database arrives

Propertymark said the Renters’ Rights Act has increased the maximum civil financial penalty for relevant Housing Act offences from £30,000 to £40,000 from 1 May 2026. Those offences include operating an HMO or other rented property without a required licence and breaching licence conditions.

The body also said liability for unlicensed properties has widened in some cases, potentially reaching landlords higher up a rent-to-rent chain. Rent repayment orders can also reach up to two years’ rent, adding another layer of financial risk for landlords who get licensing wrong.

Nathan Emerson, chief executive of Propertymark, has repeatedly argued that licensing should be evidence-led and proportionate. In the new briefing, the organisation said councils must show clear aims, transparent fees and proper enforcement capacity rather than treating licence income as the answer on its own.

Ealing, Preston and Burnley are already consulting on new costs

The Propertymark briefing draws attention to several live consultations. Ealing is consulting on a replacement borough-wide additional licensing scheme, with proposed fees including £1,300 for a three- or four-person HMO and £1,100 for a Section 257 HMO. Preston has proposed a five-year licence fee of £1,050, while Burnley is consulting on redesigned schemes and new designations.

This follows Landlord Knowledge’s report on Preston’s proposed £1,050 landlord licensing fee, which showed how some councils are pressing ahead with fresh charges even as the national PRS Database moves closer. Propertymark’s latest note adds a wider warning: local licensing is expanding now, not after the database starts.

Landlords should also read this alongside Ealing’s latest HMO licensing consultation, another sign that boroughs are still building bespoke local systems despite the coming national register.

The trade body’s bigger point is that the database should reduce duplication rather than stack fresh admin on top of existing schemes. If that does not happen, landlords in some areas could face national registration, local licensing, planning controls and stronger penalty exposure at the same time.

What this means for landlords

  • If you own HMOs or let in licensing areas: check whether your council is consulting on new fees, broader coverage or replacement schemes for 2027.
  • Watch for: the late-2026 regional rollout of the PRS Database and whether ministers let councils keep asking for the same information twice.
  • Bottom line: the licensing burden is getting more expensive and more layered, even before the new national database goes live.

Editor’s view
The danger for landlords is not one single new rule. It is the growing pile-up of national registration, local licensing and bigger fines. If ministers want compliance to improve, they need one cleaner system, not three overlapping ones.

Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 18 August 2026

Sources: Propertymark
Related reading: Preston proposes £1,050 landlord licensing fee
 

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About the Author

The Landlord Knowledge editorial news team is headed by Leon Hopkins
Editorial Team
The Landlord Knowledge editorial team covers UK buy-to-let and property investment news, policy, regulation, and finance. Our reporting focuses on the issues that matter most to private landlords and property investors across the UK. Headed by Leon Hopkins, author of The Landlord's Handbook.
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