Thousands of landlords in England are facing increasing costs due to selective licensing schemes imposed by local councils, new research has found.
Selective licensing schemes aim to improve standards of privately rented homes by requiring landlords in certain parts of England to obtain a license to rent out property.
Forty-seven English councils, out of the 245 that responded to a Freedom of Information (FOI) request from Direct Line, have a selective licencing scheme in place, an increase of 9.3% from those who reported having a scheme in place in 2022.
Councils are charging landlords almost £700 on average for obligatory selective licenses, but there is a huge variation across England, according to the insurance company.
The councils charging the most included Leicester (£1,290), Newcastle (£900), and Greenwich (£858), whilst Ashfield District Council (£350), East Staffordshire Borough Council (£507), and North Yorkshire Council (£550) charge the least.
Sarah Casey, head of landlord insurance at Direct Line business insurance, commented: ‘Our analysis shows significant regional variations in landlord licensing costs and a growing burden from fines for non-compliance.
‘Anyone planning on becoming a landlord, or who already has a property portfolio, should check with their local authority to see if they have a scheme in place.’
