New research has revealed that the number of selective licencing schemes in the UK has increased by nearly 10% over the past two years, with landlords paying on average £700 for a five-year licence.

It has also emerged that selective licencing schemes squeezed some £20 million of the private landlord sector last year alone in licencing fees, with a further £2.5 million in revenue coming from fines for non-compliance.

The jaw-dropping figures, which follow Freedom of Information requests from Direct Line among some 245 councils, also reveals that 20% of councils now operate this kind of private rented sector licencing scheme, with the most recent big local authorities to implement them including Southwark, Liverpool, Peterborough, Merton, Charnwood Borough and Birmingham.

Fees

The survey also found that the fees charged vary hugely from £550 in North Yorkshire to £12,90 in Leicester, and that some councils enforce the rules, and issues fines, much than offers headed up by Waltham Forest, which issued 170 fines last year, and Middlesborough, where the figure was 128.

“It’s important that landlords comply with all appropriate legislation as anyone not doing so could face a hefty fine,” says Sarah Casey (pictured) from Direct Line business insurance.

“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.”