Top Councils Earning from HMO Licensing
Councils are cashing in on landlords by raising millions of pounds from rental property licencing schemes.
Property data firm Kamma has rooted through public registers listing nearly 400,000 houses in multiple occupation (HMOs) to find the top 50 council licensing schemes that generated £327,737,160 in fees paid by private landlords.
Glasgow City Council runs the most expensive licencing scheme, charging an average of £2,289 to licence a single HMO. The Glasgow scheme has raised £7.7 million but only ranks 14th nationally as a licensing cash generator.
Southwark, another London council, has generated the most cash from HMO licencing - a total revenue of £23.4 million.
North-east London council Waltham Forest has the most licensed homes (24,102) and ranks second for generating cash (£18 million).
Nottingham leads the way outside London
Outside London, Nottingham has the most licenced HMOs (25,891) and has raised the most licensing cash (£15.5 million).
Kamma chief operating officer Chris Morgan said: "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."
Councils should use property license fees to cover the costs associated with the licensing scheme, including enforcement actions, assessments, and maintaining registers, as well as addressing issues like crime and deprivation in designated areas.
Top 20 councils: Property licencing fee generation
| Council | Additional licensing | Selective licensing | Mandatory licensing | Total licensing Revenue |
|---|---|---|---|---|
| Southwark | £10,223,200 | £9,909,000 | £3,282,000 | £23,414,200 |
| Waltham Forest | £723,000 | £15,687,000 | £1,598,850 | £18,008,850 |
| Haringey | £4,131,050 | £7,617,972 | £4,794,090 | £16,543,112 |
| Nottingham | £1,581,370 | £12,401,585 | £1,858,010 | £15,840,965 |
| Enfield | £225,852 | £13,151,355 | £1,191,359 | £14,568,566 |
| Barking and Dagenham | £427,000 | £13,237,300 | £384,000 | £14,048,300 |
| City of Edinburgh | - | - | £13,750,803 | £13,750,803 |
| Lambeth | £5,768,400 | £37,950 | £6,109,950 | £11,916,300 |
| Newcastle upon Tyne | £2,517,900 | £5,023,000 | £4,158,000 | £11,698,900 |
| Camden | £9,372,912 | - | £1,239,504 | £10,612,416 |
| Bristol, City of | £3,433,300 | - | £6,023,884 | £9,457,184 |
| Manchester | - | £1,276,002 | £7,195,487 | £8,471,489 |
| Belfast | - | - | £8,025,750 | £8,025,750 |
| Glasgow City | - | - | £7,743,687 | £7,743,687 |
| Ealing | £1,536,700 | - | £6,138,600 | £7,675,300 |
| Portsmouth | £916 | - | £7,478,224 | £7,479,140 |
| Islington | £3,284,928 | £1,965,600 | £1,671,840 | £6,922,368 |
| Brent | £3,890,040 | - | £2,923,200 | £6,813,240 |
| Brighton and Hove | £2,144,872 | - | £4,433,964 | £6,578,836 |
| Hackney | £4,603,700 | £1,285,500 | £359,100 | £6,248,300 |
Source: Kamma
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