The number of licensing schemes lined up to launch this year has already surpassed last year’s total, as councils continue to put the financial squeeze on landlords.
Geospatial technology company Kamma reports that while 23 additional and selective schemes launched last year, there are currently 24 schemes set to release this year, as well as six consultations.
It predicts that with the rate of new schemes coming in, there could be as many as 40 new schemes launching in 2025.
Selective licensing is proving the most popular, accounting for 14 of the 24 announced schemes, no doubt due to a recent change in the law whereby councils no longer need government approval to launch a scheme covering more than 20% of a region.
Kamma predicts that councils will still be keen to raise money through licensing following the introduction of the Renters’ Rights Bill and property database given the devolution changes and sheer number of new measures introduced.
“These measures have proved highly successful for councils to generate revenue and show no signs of letting up,” a spokesman tells LandlordZONE.
“Coupled with proposed changes to increase Rent Repayment Orders from 12 to 24 months in the bill, licensing will be an essential tool in councils’ belts to catch out rogue landlords, and the property database should only make this easier for them to do.”
Southwark is at the top of the leader board for revenue generated from its schemes.
It has raked in more than £23million in HMO licensing from 21,062 properties since 2020.
Waltham Forest has licenced the most properties of any council, with 24,102, and follows Southwark in terms of revenue at £18million, along with Haringey at £16.5million and Nottingham at £15.8 million.
Waltham Forest also has the most selectively licensed properties at 22,410, generating £15.7million in revenue, while Edinburgh leads with 12,627 mandatory HMO licenses, generating £13.8million in revenue and Southwark leads with 7,864 additional licenses, generating £10.2million.
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