Propertymark has warned that basic licensing mix-ups are still driving enforcement in Wales after almost all 3,198 fixed penalty notices issued by Rent Smart Wales in the year to May 2026 were linked to landlords who had either failed to register or failed to secure the right licence.
The fresh concern is not just the number of penalties but what sits behind them. The trade body says many landlords are still being caught by the split between registration and licensing, with some assuming one completed step covers the other or that an agent appointment removes the need to keep records current.
The Welsh system still turns small admin gaps into live enforcement risk because landlords can remain exposed even when they think the basics are already covered. That is especially awkward for smaller operators who switch agents, add property, renew late or stop self-managing without checking how the change affects their status.
Propertymark says most Welsh penalties still stem from licensing confusion
In its latest response to the Welsh Government’s evaluation of Rent Smart Wales, Propertymark said the regime continues to suffer from weak communication, uneven awareness and too much avoidable confusion around the distinction between registration and licensing. It added that landlords who fail to register or obtain the correct licence accounted for almost all 3,198 fixed penalty notices issued in the 12 months to May 2026.
That legal split leaves landlords exposed even when they think one part of the process has already covered the rest. All private landlords renting out domestic property in Wales must register with Rent Smart Wales, but those carrying out letting or management work must also hold a licence unless a licensed agent handles those tasks.
Propertymark also pressed for clearer guidance, better support for agents and a more practical approach to engagement with landlords. The wider evaluation found a notable proportion of unregistered or unlicensed landlords remained in the system, alongside complaints about the tone of letters, slow response times and limited awareness among tenants.
This follows Landlord Knowledge’s June warning on Rent Smart Wales renewals and earlier coverage of Propertymark’s push for sharper, fairer licensing penalties. The latest figures suggest the Welsh issue is no longer simply whether enforcement exists, but whether too many landlords are still being tripped up by a regime they do not fully understand.
Why landlords should treat Welsh licensing as a live task
Landlords with Welsh property should treat registration, licensing and record updates as live compliance work rather than a formality filed once and forgotten. The risk is not confined to rogue operators. It can also hit otherwise compliant landlords whose licence expires, whose managing arrangements change or whose details drift out of date.
The practical warning is that a smaller paperwork error can now carry a very real cost. Where the system depends on landlords understanding two separate obligations and keeping them aligned over time, the safest approach is to check status proactively and keep dated evidence of who is licensed to do what.
What this means for landlords
- If you own property in Wales: check that both registration and any required licence are current and match who actually manages the property.
- If you use an agent: confirm which legal duties sit with the agent and which still stay with you as landlord.
- Watch for: any Welsh Government move to expand or tighten the regime before simpler guidance is in place.
- Bottom line: most recent Welsh landlord penalties were tied to basic compliance gaps, not exotic legal disputes.
Editor’s view
Licensing regimes are hard to defend if too much enforcement still comes from confusion over the entry rules. Wales may want a tougher system, but the latest figures also suggest it still needs a clearer one.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 26 August 2026
Sources: Propertymark, Welsh Government evaluation of Rent Smart Wales
Related reading: Rent Smart Wales warns landlords to check licence renewals now
