New landlord registration costs could put further pressure on rents, We Buy Any Home warns
Landlords of assured or regulated tenancies will generally be required to register themselves and each occupied rental property through the Government's new Register your rental property service.
New annual registration costs for landlords could contribute to further pressure on rents if they result in more properties leaving the private rental sector (PRS), according to We Buy Any Home.
Landlords of assured or regulated tenancies will generally be required to register themselves and each occupied rental property through the Government’s new Register your rental property service.
The regional rollout is due to begin in the West Midlands on 15th December before continuing across England during 2027.
Landlords will pay an annual fee of £65 for each property, meaning those with five properties would pay £325 a year, rising to £650 for a 10-property portfolio.
Elliot Castle, CEO of We Buy Any Home, said: “We absolutely welcome legislation that protects tenants from rogue landlords and helps councils act against unsafe or poorly managed properties.
“However, policymakers must also recognise the cumulative financial and administrative burden being placed on responsible landlords. For some, this latest requirement could become the final nail in the coffin.”
Average private rents in England reached £1,459 a month in August, up 4% year-on-year, according to Office for National Statistics (ONS) figures.
Castle argued that while the £65 fee alone may be relatively small, it would add to other costs faced by landlords, including mortgages, taxation, maintenance and safety requirements.
He said: “A £65 fee viewed in isolation may not sound enough to make somebody sell but landlords do not experience it in isolation.
“It arrives alongside mortgage costs, taxation, maintenance, safety requirements and wider regulatory changes. Smaller landlords with narrow margins may decide that continuing is no longer financially or practically worthwhile.”
We Buy Any Home warned that rental supply could be affected if landlords sell properties to owner-occupiers rather than other landlords, potentially increasing competition among tenants in areas where demand already exceeds supply.
The Government has said the database will help councils identify poor practice and eventually allow tenants to check whether landlords are complying with key legal requirements.
Landlords will be required to provide information including property, rent and occupancy details, alongside relevant gas, electrical and energy performance documentation.
Failure to register can result in a civil penalty of up to £7,000, rising to a maximum of £40,000 for repeated or continued breaches.
Castle added: “Good landlords should begin preparing their documents and checking the deadline for each property now.
“But ministers must ensure that rooting out genuine wrongdoing does not come at the cost of driving conscientious landlords from the market and leaving tenants with even fewer affordable choices.”
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