Data has revealed that hard-up councils are using property licensing schemes to generate significant revenues, says Kamma COO Chris Morgan (pictured).

The licensing compliance portal analysed the public registers of over 389,000 licensed HMOs and found that the top 500 councils have raked in £327,737,160 from their schemes.

Southwark

London councils dominate the licensing landscape, with 60% of the top 20 highest revenues in the capital. Southwark is in top spot, generating over £23m across its schemes.

Not far behind is Waltham Forest, where licensing fees have already brought in over £18m and with two new borough-wide schemes set to launch in April and May, revenues are projected to climb even higher. It also has the largest number of licensed properties, with over 24,000 privately rented homes.

Also, Lambeth operates London’s most expensive mandatory licensing scheme, charging landlords £2,530 per property, which brings in revenue of over £11m.

Nottingham is the highest-earning council outside London, amassing over £18m in licensing revenue.

And with recent legislative changes removing the requirement for the Secretary of State to approve selective licensing schemes covering more than 20% of a borough, those revenues are only likely to get bigger.

As more local authorities introduce new schemes, staying ahead of these changes is now essential.”

Morgan says: “This data shows the true scale of licensing fees and their growing impact on the private rental sector.

“With councils generating hundreds of millions from licensing schemes and enforcement efforts intensifying, landlords and agents must factor compliance costs into their business models.

“As more local authorities introduce new schemes, staying ahead of these changes is now essential.”