-
14/7/25 8:13 pm
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
A couple of weeks ago, the press had a field day when it emerged that Chancellor Rachel Reeves had failed to secure a selective licence for renting out her property. I actually took part in a live interview with Vanessa Feltz on LBC about the case, sitting in a corridor at Tottenham Hotspur’s stadium of all places. It just goes to show that even those in high office can get it wrong, the rules apply to everyone, and not following them has consequences. Proof, if ever it were needed, that even those at the top can still fall foul of the system they helped create!
Both Knight Frank (the agent she initially contacted) and later Harvey & Wheeler advised her that the property required a licence, yet the agent she went through ultimately failed to apply for it. Whether Ms Reeves did or did not think the agent was going to handle the licence on her behalf, the key point remains the same, and it’s one I always reiterate to landlords: the responsibility always lies with the landlord. It’s you who will face the penalty.
As we know, licensing has become a major revenue stream for local authorities. According to data released earlier in the year by the proptech firm Kamma Ltd, the top 50 councils in the UK pulled in a massive £327 million from property licensing schemes. Among them, Southwark Council alone collected over £23 million in licensing revenue. Councils will always say these schemes are about making rental homes safer and driving up standards, and one Labour-run authority has recently hailed its licensing schemes as a “huge success” for tenant safety in the private rented sector.
With many councils under intense financial pressure, these licensing fees have suddenly become a vital income stream. Licensing, compliance, enforcement, it all feels increasingly like a game where landlords are the cash-cow, and being realistic, councils are not likely to give up that level of income any time soon.
There are three main types of licensing, Mandatory, Additional, and Selective (or discretionary), and each local authority can interpret or apply them differently. Mandatory licensing covers larger HMOs, usually those with five or more tenants forming more than one household and sharing facilities. Additional licensing allows councils to extend those rules to smaller shared houses or flats not already covered by the mandatory scheme. Selective licensing, meanwhile, lets councils require any privately rented property in a designated area to be licensed, often as a way to tackle poor housing standards, anti-social behaviour or low housing demand.
This means that what is required in one borough might not apply just a few streets away, and keeping on top of all this is challenging, yet landlords are expected to know it all, as the Rachel Reeves case shows.
Unfortunately, it is about to get tougher. Under the new Renters’ Rights Act, councils will gain even more power as we move to longer periods for Rent Repayment Orders (up to two years) and higher civil penalties. The playing field is tilting further against landlords, and as I keep banging the drum, ignorance is not a defence.
Over the years, I have worked with The Lettings Industry Council, who originally came up with the idea of creating a national property portal, a one-stop digital platform where landlords, tenants and agents can check a property’s compliance in seconds. Being able to see instantly whether a home has the correct licence, a valid gas safety certificate, up-to-date EPC, electrical inspection and so on, would be so beneficial. It is the sort of modernisation the sector desperately needs, and I hope the Government delivers on it soon as it would be a genuinely useful tool for everyone involved.
I think the main take away from this is that if you are using an agent, do not just assume that “full management” means they will handle the licence application for you. Check your contract. Are licence applications included? Many “let-only” agents will not deal with licensing, leaving it to you to sort.
When instructing an agent, do your due diligence. Ask direct questions about what licences they will deal with, how they monitor compliance, and what happens if they miss something. The council won’t come for the agent, they will fine you.
Selective licensing is supposed to drive up housing standards but the system as it stands is inconsistent, confusing and often feels like a minefield designed to trip up landlords. However, the Rachel Reeves story should be a wake-up call to every landlord out there. Take nothing for granted. Check, double-check, and never assume your agent has it covered, because not knowing the rules is never a defence.
Tags:
.avif)
Comments