Propertymark has urged Hackney Council to rethink licensing schemes that risk increasing rents and pushing smaller landlords out.
Hackney is currently consulting on plans to introduce a borough-wide additional scheme and a selective licensing scheme in 17 of its 21 wards from early 2026.
In an unusual move, the letting agents’ trade body says the council should move away from its borough-wide approach, particularly as the national PRS database launch is imminent.
“We believe Hackney’s broad-brush approach, which is similar to schemes in place across many local authorities, risks duplicating this national system,” it explains. “More targeted schemes would be better value for money and more effective in tackling serious hazards and anti-social behaviour. Data in Hackney’s consultation shows that serious hazards, complaints, and anti-social behaviour are concentrated in certain wards.”
Hackney proposes a £925 fee per property – significantly higher than its previous £500 selective pilot scheme, and well above neighbouring boroughs such as Brent, Lewisham, and Haringey. Propertymark adds: “High fees will inevitably be passed on to tenants through rent increases. Additionally, the burden of licensing fees, at a time when landlords are impacted by ongoing mortgage costs and the cost-of-living crisis, will affect the ability to improve standards.”
Its research also shows that rising costs, including licensing, can push smaller landlords out of the PRS. Rather than licensing, it advocates for a regulatory framework that focuses on education, proportionate enforcement, and effective targeting of problem areas.
Propertymark has advised Hackney to lower fees in line with comparable boroughs, offer discounts for landlords using Propertymark-member agents (as has been done successfully in Liverpool and Merton), and extend discounts to properties managed to high energy efficiency standards.
The council believes its selective scheme would allow it to regulate the majority of private rented homes in the borough and build a network of responsible landlords while offering guidance and support.
The consultation is open until 21st September at bit.ly/Hackney-Licensing
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