Letting agents could see a further squeeze on rental stock as landlords prepare for a new annual charge under the government’s rental property register. Landlords will generally pay £65 a year for every occupied rental property when the system rolls out across England.
The new register will begin its regional rollout in the West Midlands on 15 December, with other parts of England to follow during 2027. Landlords will need to register themselves and each qualifying occupied property during their regional registration window, providing property and tenancy information including details on gas safety, electrical safety, and energy performance.
While the £65 fee is described as relatively modest on its own, there are warnings that this additional recurring cost could prompt some landlords to leave the private rented sector. Elliot Castle, CEO of We Buy Any Home, noted that the fee arrives alongside other costs such as mortgage expenses, taxation, maintenance, safety requirements, and wider regulatory changes.
Any reduction in rental supply would depend on who buys properties from exiting landlords. If homes are sold to owner-occupiers rather than other landlords, the number of homes available to tenants would decrease. This could lead to greater competition for available homes for tenants, particularly in areas where demand already exceeds supply.
The government states the database will provide councils with greater visibility of the private rented sector and help identify non-compliance. Failure to comply with the registration can result in a civil penalty of up to £7,000, with repeated or continuing breaches potentially attracting penalties of up to £40,000.