Landlords face £327m annual bill under new rental database scheme
Landlords face £327m annual bill under rental database scheme

Landlords face a £327m annual bill under the government's new property registration scheme, according to estimates from the National Residential Landlords Association (NRLA). The trade body has criticised the charges and accused ministers of duplicating existing requirements.

The criticism comes ahead of the database's launch on 15 December, starting in the West Midlands. The government will then roll out the scheme across England over the following 12 months. All landlords actively letting properties must register by 14 November 2027.

Cost of registration

At £65 per property each year, the NRLA estimates that the database will cost the sector at least £327m annually. The fee is almost seven times the amount the government originally envisaged in its impact assessment. The association warns that landlords could pass some of these costs on to tenants.

The NRLA also questions whether the database offers sufficient benefits to justify the expense. Councils already collect much of the required information through existing licensing schemes, some of which cost as much as £2,300 per property.

Paperwork concerns

The NRLA has also criticised the additional paperwork. Unlike Energy Performance Certificates, gas and electrical safety certificates remain outside the government's current digitisation plans. Landlords will instead have to scan and upload the documents manually, which the association says will create additional work for larger landlords and build-to-rent operators.

The database forms a central part of the Renters' Rights Act. Ministers say it will improve transparency for tenants and help councils identify landlords who fail to meet their legal obligations. Landlords will have three months to register once the scheme reaches their region, and those who fail to comply could face financial penalties.

Further requirements

Further legislation will extend registration requirements to vacant properties. Landlords and letting agents will also have to display registration numbers in property adverts. Meanwhile, landlords await confirmation of the fees for the new private rented sector ombudsman and face higher taxes on rental income from 2027.

Ben Beadle, chief executive of the NRLA, questioned the cost and practical benefits of the database. He said: “A well-designed database should make it easy for landlords to demonstrate compliance with their obligations; empower tenants; and be truly digital in every way. This looks likely to fail on every count.

“What we have on offer is a costly mess. It expects payment for landlords to provide much the same information as many already give their councils, with no additional benefit to them or their customers.”

Beadle also compared the £65 annual registration fee with the cost of an MOT test, adding: “Frankly, landlords and tenants are being ripped off in the name of consumer protection.” The NRLA argues that landlords could make better use of the money by investing in improvements to their properties, particularly to meet the government's energy efficiency targets.