The fee each landlord pays is worked out according to a national fee structure. Each local authority charges a principal fee (per landlord) for registering of £55, plus £11 for each property. Various discounts are available in different circumstances. There is also an additional penalty fee of £110 which can be applied to landlords who fail to submit an application following two reminder letters from the local authority.
What discounts are available?
The following discounts are available on the principal fee:
100% discount (no principal fee payable):
- any joint owner who is not the lead joint owner
- any holder of a current HMO licence (where the licence is held in the same local authority they are registering in)
- any member of an accreditation scheme which is accepted by the relevant local authority as involving a 'fit and proper' test equivalent to that required for registration
- registered charities
50 per cent discount on principal fee (fee of £27.50):
- any landlord or agent applying to a second or subsequent local authority. This discount is only available when the application is made online and both (or all) authorities are paid for together.
100% discount is available on the property fee for:
- any house for which an HMO licence is in force
- any house listed in an accreditation scheme which is accepted by the relevant local authority as involving a 'fit and proper' test equivalent to that required for registration
- registered charities
Having calculated the total fee, the following discounts apply:
- 10 per cent discount for applications submitted online
Will agents have to pay an additional fee for every property they manage?
No. Agents only pay the principal fee. The fee for the property is paid by the owner.
Is registration entirely funded by fees?
The IT system is centrally funded. Ministers are conscious of the need to keep fees at a reasonable level whilst assuring good landlords that those who evade registration will be identified and dealt with.
However, the general principle is that those involved in an area of business should bear some of the costs of any regulation required to improve the sector. The general premise is that fees fund the running costs of registration whilst central funding covers enforcement.
Will landlords pass registration fees on to tenants?
That is for individual landlords to decide, but fees are being kept to a reasonable level nationally for this reason. The relatively small cost which will result (and which may potentially be passed on to tenants) has been deemed reasonable in exchange for the assurance of good management which tenants gain.
Why is there an additional fee for each property? Doesn't this unfairly target those with larger portfolios?
It was decided that some fee should be charged on each property because landlords with larger portfolios can spread the costs of registration more easily. Otherwise, the scheme would have a disproportionate impact on small landlords.
Why is it more expensive to apply on a paper application form?
Manual applications are not more expensive per se, but online applications attract a discount of 10%. This is largely due to the added staffing costs of inputting information from paper application forms to the central IT system. All applicants are encouraged to apply online and local authorities are able to advise on the location of public internet points.