Landlords face an increased risk of breaking property licensing rules as the number of schemes continues to grow and enforcement increases.
There were 49 new selective and additional licensing schemes across the country in 2025, with 16 more already planned for 2026, according to research by Kamma.
Ahead of increased licensing penalties as part of the Renters’ Rights Act, where are the latest schemes being launched and how can landlords follow the rules?
Recap – how does landlord licensing work?
If you rent out a property, your local authority may require you to have a licence. Licences typically cost between £750 and £1,500, lasting for up to five years.
There are three main types of landlord licensing:
- Selective licensing – councils can require every rental property (regardless of size) in a specific street or area to have a licence
- House in multiple occupation (HMO) licensing – any HMO with five tenants (from more than one household) needs an HMO licence
- Additional licensing – some councils require HMOs with less than five tenants to get an additional licence
If your property doesn’t have the correct licence, you could be fined by your local authority.
Where are new licensing schemes being launched in 2026?
On top of the significant number of new schemes in 2025, there are already 16 new or expanded schemes set to launch this year.
Locations include:
| Location | Type of licensing | Start date |
| Leeds | Selective | Mid-2026 |
| Salford | Selective | January 2026 |
| Thurrock | Selective | Early 2026 |
| Birmingham | Renewing and expanding existing licensing | No set date |
As well as the following London boroughs:
| Borough | Type of licensing | Start date |
| Havering | Selective and additional | March 2026 |
| Brent | Selective | Early 2026 |
| Wandsworth | Selective expansion | April 2026 |
| Hackney | Selective expansion | May 2026 |
| Islington | Selective | February 2026 |
| Hillingdon | Additional | Spring 2026 |
The rise in the number of landlord licensing schemes could be down to a government rule change in 2024. New schemes no longer need approval from the Secretary of State, making it easier for local authorities to introduce them.
London remains a hotbed for licensing schemes
Landlords in 28 out of 32 London boroughs will need to comply with licensing schemes. The only four boroughs without licensing currently are:
- Bromley
- Hillingdon (although a scheme has been consulted on recently)
- Richmond upon Thames
- Sutton
The range of schemes across boroughs has created a ‘uniquely fragmented compliance landscape’, according to Kamma.
“You could drive through North London in a couple of hours and pass through sixteen different licensing regimes,” said Orla Shields, Kamma CEO.
“By the time you’ve learnt one set of rules, you’re already in another borough with completely different requirements.”
London landlords have relieved £13 million in licensing fines between January 2018 and December 2025, according to the Mayor of London’s rogue landlord database.
Renters’ Rights Act: licensing penalties set to rise
Fines for breaking licensing rules are set to increase under the Renters’ Rights Act, which comes into force from 1 May 2026.
A standard breach of rules (such as not having a licence) could see landlords fined up to £7,000, with a fine of up to £40,000 for serious or repeat offences.
On top of this, the scope of rent repayment orders (RROs) will double. This means tenants will be able to claim back up to 24 months of rent if their landlord breaks the law.
Local authority enforcement of licensing rules is also expected to become easier thanks to the introduction of a national Private Rented Sector Database. This is set to be introduced in late 2026 as part of phase two of the Renters’ Rights Act.
All landlords will need to sign up to the national database (which is likely to have a registration fee). To start with, the new database will run alongside existing licensing schemes. It’s currently unclear whether the current licensing system will be phased out once the database is live.
More guides for landlords
- Landlords warned as local councils crack down on compliance
- Right to rent checks – how to verify a tenant’s immigration status
- New energy efficiency rules for rental properties
- Section 13 rent increase: a guide for landlords