Landlord Licensing. What Property Owners Need to Know
Landlord licensing is expanding across England and property owners need to be increasingly aware of their responsibilities.
With more councils introducing licensing schemes and tougher penalties now in place under the Renters’ Rights Act, staying compliant has never been more important.
Research from property compliance specialist Kamma found that 49 new selective and additional licensing schemes were introduced during 2025, with a further 16 schemes announced or planned for 2026.
For landlords, particularly those managing properties across different local authority areas, keeping track of licensing requirements can be challenging.
Understanding Landlord Licensing
Not every rental property requires the same type of licence. Requirements depend on the property, its occupancy and the local authority in which it is located.
There are three main types of landlord licensing:
Selective Licensing
Some councils require privately rented properties within designated areas to hold a licence, even where the property is occupied by a single household.
Mandatory HMO Licensing
Properties occupied by five or more people forming two or more households and sharing facilities will generally require a mandatory House in Multiple Occupation (HMO) licence.
Additional HMO Licensing
Local authorities can introduce additional licensing schemes covering smaller HMOs that would not otherwise fall under mandatory licensing requirements.
Licence fees vary between councils and licences are generally issued for a maximum of five years, although shorter periods may apply.
Licensing Schemes Across Manchester and Salford
For landlords operating across Greater Manchester, local licensing requirements deserve particular attention.
Salford introduced further selective licensing arrangements in January 2026, while other local authorities across England have continued to introduce or expand their schemes.
A property requiring a licence in one area may not require the same licence in another. This makes it particularly important for portfolio landlords to check the requirements for each individual property rather than assuming the same rules apply across their portfolio.
Landlords should also be aware that licensing schemes can change as councils introduce new designated areas or renew existing arrangements.
Tougher Penalties for Non-Compliance
The Renters’ Rights Act has brought significant changes to the private rented sector, including stronger enforcement powers.
From 1 May 2026, local authorities gained powers to impose civil penalties of up to £7,000 for certain breaches and up to £40,000 for more serious or repeated offences.
Landlords who fail to obtain a required property licence may also face rent repayment orders, potentially requiring them to repay up to 24 months of rent where the relevant legal conditions are met.
These changes make it essential for landlords to understand their obligations and ensure the appropriate licences are in place.
A National Landlord Database
Another significant development is the planned introduction of a national Private Rented Sector Database.
The database is intended to provide greater transparency across the rental market and help local authorities identify landlords and properties that may not meet regulatory requirements.
Landlords will be required to register when the relevant provisions come into force, with further details on implementation and registration requirements expected through the government's rollout.
Importantly, the database is not intended to replace existing property licensing requirements at the outset.
What Should Landlords Be Doing?
Whether you own a single buy-to-let property or manage a larger portfolio, reviewing your licensing position should be part of your regular property compliance checks.
This includes confirming whether your property falls within a licensing area, checking licence expiry dates and ensuring the property continues to meet the conditions attached to its licence.
For landlords with properties across multiple locations, maintaining accurate records and monitoring changes introduced by individual councils is particularly important.
We understand that managing rental properties involves more than collecting rent and arranging maintenance.
Keeping properties compliant, protecting landlords' investments and staying informed about changing regulations are all important parts of effective property management.
We work with residential landlords and property investors across Manchester and the surrounding areas, providing professional management services designed to reduce the day-to-day responsibilities of property ownership.
Unsure whether your rental property requires a licence?
Contact us today to discuss your property management requirements and how we can support you.
