Propertymark is calling on the UK government to commit to removing discretionary landlord licensing schemes once the national Private Rented Sector (PRS) Database is fully operational.
The organisation sets out its case in a new position paper, The effectiveness of local authority landlord licensing schemes, which examines the cost, effectiveness and enforcement of selective and additional licensing across England and Wales.
While licensing can help raise standards and tackle poor housing, Propertymark argues that broad discretionary schemes can impose significant costs and administrative burdens on responsible landlords and letting agents without necessarily improving enforcement.
The government has confirmed that the national landlord registration service, the first stage of the PRS Database, will launch on 15 December 2026 as the "Register your rental property" service. It begins in the West Midlands before rolling out across England over 12 months, and all landlords actively letting property in England will ultimately have to register.
Propertymark says the new national infrastructure offers a chance to reduce duplication and let councils focus enforcement resources on the landlords who pose the greatest risk.
Fees and enforcement capacity
Propertymark's analysis found selective licensing fees above £1,000 per property in several areas, with additional licensing schemes charging more. For landlords and agents managing larger portfolios, costs can quickly reach tens of thousands of pounds.
The paper also raises concerns about enforcement capacity. Propertymark cites evidence that about two-thirds of councils in England had not prosecuted a landlord in the previous three years, even though councils receive an estimated 300,000 complaints a year about property conditions. More than 84% of councils also report difficulty recruiting environmental health professionals.
Propertymark wants greater transparency over licensing income, with councils required to show how fees fund inspections and enforcement. It also proposes a national cap of 20% on the share of licensing fees spent on initial administration.
"Landlords should be able to see a clear connection between the fees they pay and the improvements being delivered in their local housing market," said Tim Thomas, senior policy and campaigns officer at Propertymark.
"The priority must be enforcement. A licensing system should not become an end in itself, particularly where councils already have extensive powers to identify and act against unsafe or poorly managed housing."
Duplication and the national database
The PRS Database is intended to provide a national record of landlords and their properties, giving local authorities better information to identify and target non-compliance. Propertymark argues that councils should treat the national system as their primary source of information, rather than asking landlords and agents to submit the same documentation repeatedly.
Where information is already held nationally, local authorities should not charge landlords again for duplicated data entry and document storage. Propertymark also wants a single national standard for what counts as a complete application.
Propertymark believes discretionary landlord licensing should be removed once the national database is fully operational. The organisation says this would not mean weaker standards or reduced protection for renters, and that enforcement resources could instead concentrate on landlords most likely to be operating outside the law.
Propertymark's proposals
Propertymark is advocating:
- Removal of discretionary local licensing once the national PRS Database is fully operational;
- Targeted, intelligence-led enforcement of higher-risk landlords;
- Greater use of national data to identify non-compliance;
- Use of the national database as the primary source of landlord and property information;
- Greater transparency over licensing fees, inspections and enforcement outcomes;
- A national cap on the proportion of licensing fees spent on initial administration;
- Independent assessment and sunset provisions for licensing schemes;
- Greater investment in environmental health officers;
- Greater use of landlord accreditation and professional standards;
- Private Rented Sector Charters setting out expected standards; and
- A Lead Authority model to reduce repeated checks for agents operating across multiple council areas.
Propertymark says the database should be judged not by how many landlords register, but by whether it helps councils identify and act against non-compliant landlords more effectively.
"The launch of the national landlord registration service is an important opportunity to reset how the private rented sector is regulated," he added.
"Responsible landlords should not be required to repeatedly provide the same information to different authorities while councils struggle to find the resources to inspect properties and take action against rogue operators.
"The UK Government now has an opportunity to make the national database the foundation of a smarter enforcement system — using national data to identify risk, removing unnecessary duplication and directing resources towards landlords who are breaking the law.
"We support strong regulation and high standards, but regulation must be proportionate, effective and deliver value for money for renters, landlords and taxpayers."
