What letting agents need to know about the next wave of licensing enforcement

Selective licenses cause headaches and confusion for letting agents and landlords, and with large fines for non-compliance, many are becoming increasingly worried. There are currently hundreds of unique licenses that local authorities have created for private rental properties.

These license schemes aim to tackle housing issues. They can vary depending on where the property is located and minimise issues such as antisocial behaviour or poor housing conditions. Without the correct licenses in place, local authorities can charge letting agents and landlords an unlimited fine or even prosecution. 

As regulations tighten and with enforcement on the rise, letting agents are under increasing pressure to navigate the evolving landscape of property licensing. 

Kamma, a leading property licensing tool, has released a new report, Red Tape Revolution: The Next Wave of Licensing Enforcement, to provide insights into the ever-changing selective licensing industry and enforcement.

Here’s what letting agents need to know.

• Licensing enforcement on the rise for letting agents
• The growing pressures for letting agents and selective licenses
• Renters’ Rights Bill impact on selective licensing
• How letting agents can prepare

Licensing enforcement on the rise for letting agents

Selective licensing enforcement is ramping up across the UK. In 2023 alone, London councils have issued nearly £900,000 in fines, with local authorities nationwide following suit. 

Kamma’s report shows that councils are becoming increasingly proactive, investing in private enforcement teams and using tenant awareness campaigns to detect non-compliant landlords.

Thanks to the Renters' Rights Bill, the introduction of a mandatory property database is also on the horizon. This will allow councils to more easily identify unlicensed properties, which could lead to stricter penalties and faster enforcement action.

What are the growing pressures for letting agents and selective licenses?

Fines are increasing, and councils are becoming more sophisticated in enforcement strategies, meaning letting agents must stay compliant and in the know now to avoid being caught.

In some areas, councils inspect thousands of properties each year, while others are just getting started. This means that letting agents must be hyper-aware of local enforcement efforts to avoid costly penalties.

Falling behind on compliance doesn’t just risk fines for your landlords - it can also damage your agency’s reputation. Letting agents who don’t take selective licensing seriously risk losing business to more informed competitors.

Renters’ Rights Bill impact on selective licensing

The Renters’ Rights Bill aims to tighten compliance across the private rental sector. By introducing a mandatory property database, the bill will make it easier for councils to track and enforce licensing regulations.

Letting agents will face more stringent oversight, and landlords could see their financial penalties doubled for non-compliance. The bill also expands rent repayment orders, increasing the financial burden on landlords who fail to meet licensing requirements.

Councils are becoming smarter in their approach, using tenant awareness campaigns and private enforcement teams to ensure properties are up to standard.

Recent cases have seen landlords hit with £85,000 in rent repayment orders for failing to comply. This means taking a proactive approach to letting agents, which is critical to staying compliant and protecting their landlords.

How letting agents can prepare

Navigating these licensing changes might seem overwhelming, but letting agents have the tools they need to stay ahead. With Kamma’s technology, you can instantly check whether a property requires a licence, ensuring full compliance without the hassle.

Goodlord’s integration with Kamma offers real-time data, meaning customers can easily verify a property’s status and stay informed of any changes to local licensing rules. This technology can minimise the risk of fines, protect your landlords, and build trust with your clients.

The private rental sector is evolving, and with it, the compliance challenges letting agents face. Staying ahead of licensing enforcement is essential for protecting your landlords and ensuring your agency remains competitive.

Download Kamma’s report and discover how compliance can become your agency’s competitive edge.