Landlords to be charged £65 per property to register on new national database

Landlords in England will soon need to fork out £65 a year for every property they own, in order to register on a new national database.It means a landlord with ten properties will end up forking out £650 a year on the new scheme, while those with even larger portfolios could pay thousands. Every landlord in England will need to register with their local council and list every property they let. The database will also require them to hand over details about the property, how much it is rented out for, current and past tenants, its energy performance certificate and safety certificates.The Ministry of Housing, Communities and Local Government confirmed the register will launch on December 15 this year, starting in the West Midlands.It will then be gradually rolled out region by region, with the final part completed in mid-November 2027.The list is part of the Renters' Rights Act which came into force in May, giving tenants the biggest increase to their rights in a generation. New rules: From December the Government will roll out the national landlord database, a central part of its Renters' Rights ActThe annual £65 fee has been labelled as a 'multi million pound rip off' by lobby group the National Residential Landlords Association.With just over five million private rented homes in England, it says the database will cost the sector a minimum of £327million per year.Some of the information that will be required on the database is already provided by landlords to councils.For example, some councils charge landlords a licence fee to let out their property. This caught out former chancellor Rachel Reeves, who admitted last year that she let out her London home without the required licence.These selective licences vary from council to council but typically cost £1,000 or more per property. They last for up to five years.Landlords who rent out houses in multiple occupation or HMOs also have to secure a special licence every five years. These can cost more than £2,000 in some cases.Ben Beadle, chief executive of the National Residential Landlords Association, says on top of the registration fees, uploading documents – such as gas or electrical safety certificates – to the register will also add to the administrative costs of compliance.'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.'More costs on the horizon for landlordsA new private rented sector Ombudsman scheme for landlords is also under way as part of the Renters' Rights Act. This is set to be compulsory from 2028, and will also incur a cost to landlords. Landlords will also be subject to a tax hike on rental income starting from April next year 2027.The change will see landlords taxed at 2 percentage points above normal income tax rates. Basic rate tax paying landlords will see their rental income taxed at 22 per cent, up from 20 per cent.Meanwhile, higher rate tax-paying landlords will see their rental income taxed at 42 per cent, up from 40 per cent today, and additional-rate taxpayers will be taxed at 47 per cent, up from 45 per cent currently.The Office for Budget Responsibility says this is estimated to bring in £500million a year for the Treasury per year from 2028-29.What if landlords fail to register or update recordsSome landlords may be tempted to try and remain off the database to avoid scrutiny. However, those who fail to register will be unable to legally let their properties and face fines for not doing so. They will also risk losing access to key statutory possession grounds.This would mean a landlord won't be able to evict a tenant if they were in more than three months of rent arrears or if they wanted to sell the property.A landlord could also face financial penalties of up to £40,000 or even criminal prosecution for persistent non-compliance.Mark Dawson of buy to let consultant AST Assistance said: 'The introduction of the private rented sector database is less about the one time registration process and more about establishing a permanent standard of effective record-keeping for landlords.'If landlords simply register, but fail to update their records, they will find themselves non-compliant and may even end up with serious financial penalties.'How to find a new mortgage Mortgage rates have jumped as conflict with Iran has driven up inflation expectations and dashed hopes of interest rate cuts.If you need a mortgage because you are buying a home, or your current fixed rate deal is due to end, you should explore your options as soon as possible. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with expert mortgage advice.Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.Or use L&C’s online Mortgage Finder to search thousands of deals from more than 90 different lenders to discover the best deal for you.Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage