If you’re a landlord in England, you could be facing hefty new costs. A growing number of councils are introducing ‘selective licensing’ schemes, which require landlords to pay for a special license just to rent out their properties.

According to a Freedom of Information request, the average cost of these licenses is a staggering £700. But the fees can vary widely – some councils charge over £1,200, while others are as low as £350.

These licensing schemes are part of councils’ efforts to improve rental property standards and tackle rogue landlords. Landlords have to meet certain requirements around safety, maintenance and tenancy management to get a license. Regular property inspections are also often included.

While only around 1 in 5 councils currently have a selective licensing scheme, the numbers are rising quickly. Direct Line insurance found a 10% increase in the last year alone, with new schemes introduced in places like Birmingham, Peterborough and parts of London.

The rise in licensing is worrying news for landlords, who are already facing a raft of tax changes and regulations. Failure to obtain a license can lead to heavy fines – one council issued penalties of up to £10,000 last year.

Councils argue the schemes help drive up standards and weed out bad landlords. But the property industry says the system is overly complex and inconsistent, with wildly differing rules and fees across the country.

“Selective licensing is a growing entity, but expectations and costs to landlords dramatically vary from council to council,” says Sophie Lang of industry body Propertymark. “There needs to be a more standardised approach.”

The concern is that continual increases in red tape and costs could force some landlords to sell up – reducing the supply of rental properties at a time when housing is already in short supply.

Landlords also face the prospect of further regulations on the horizon. Labour’s Renters’ Rights Bill, currently going through Parliament, could introduce a nationwide landlord register and ‘decent homes’ standard – adding to the compliance burden.

“With all this red tape, there’s a balancing act to be had,” says Simon Wood of estate agent Hamptons. “Improving homes for tenants, without overburdening landlords too much.”

So if you’re a prospective landlord, or already have a property portfolio, it’s crucial to stay on top of the ever-changing licensing rules in your local area. Check with your council to see if a selective licensing scheme is in place, or planned – and factor those extra costs into your sums.