Kamma has revealed the full extent of licensing fees, uncovering a staggering £327,737,160 generated by the top 50 councils through the analysis of public registers of over 389,000 licensed HMOs. The figures highlight the growing financial burden on landlords and agents as local authorities ramp up enforcement efforts.
London continues to dominate the licensing landscape, with 60% of the top 20 highest-revenue councils based in the capital. Among them, Southwark leads the way, generating over £23m in licensing revenue across its schemes, according to the PropTech firm.
Close behind is Waltham Forest, where licensing fees have already brought in over £18m. With two new borough-wide schemes set to launch in April and May, revenues are projected to skyrocket further. Waltham Forest also holds the largest number of licensed properties, with over 24,000 privately rented homes officially recorded.
Kamma’s research reveals that 10 councils have each generated over £10m in licensing fees, reinforcing the growing financial impact on landlords and agents. Lambeth, for instance, operates the most expensive mandatory licensing scheme in London, charging landlords £2,530 per property—contributing to their total licensing revenue of over £11m.
Beyond the capital, Nottingham is the highest-earning council outside London, amassing over £18m in licensing revenue.
Recent legislative changes have removed the requirement for Secretary of State approval when introducing selective licensing schemes covering more than 20% of a borough, making it easier for councils to implement new regulations.
Chris Morgan, COO of Kamma, commented: “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.”
