According to PayProp, the revenue raised by landlord licensing schemes could be used to help improve standards in the lettings market if reinvested into enforcing rental sector legislation.

The lettings payment provider says that if councils use this money to police an increasingly diverse private rental sector this could benefit tenants, landlords and letting agencies in the long-term. It is estimated that around 16% of English local authorities have a selective licensing scheme in place, covering almost half a million rental properties.

On top of this, since October 2018 it has been mandatory for all landlords of Houses in Multiple Occupation (HMO) to obtain a licence for their property. However, there are currently no obligations for local authorities to invest licensing revenue back into housing.

Average landlord licence costs an estimated £600


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