Private Rented Housing: Fees and Charges

The Renters’ Rights Bill includes provisions for the Private Rented Sector Database to be funded through fees charged to private landlords when they register. The new service will bring substantial benefits to landlords – providing a single source of information about their legal responsibilities and helping them showcase their compliance. The fees charged will also support local councils to enforce against unscrupulous landlords who undercut the responsible majority.  Further details on fees will be set out in secondary legislation. We will take steps to make sure costs remain reasonable, proportionate, and sustainable.

Landlords will be required to pay for membership of the PRS Landlord Ombudsman. This is in line with practice across other sectors where there are ombudsmen already established, including for social landlords who currently pay £8.03 per unit annually. The Ombudsman will set the fee on the basis of their running costs and service provision and the government will ensure that the fee is proportionate and good value. We will seek to maximise operational efficiency of the database service and ombudsman, including through sharing of data.

The Private Rented Sector Database will operate alongside selective licensing to drive improvement in standards in the private rented sector, not as a replacement for these schemes. We will continue to review the use of selective licensing as we implement the Private Rented Sector Database. We are clear in guidance that local authorities should be mindful of any cost impacts to landlords, particularly those who are already fully compliant with their obligations.