Local authorities are increasingly turning to property intelligence software to identify landlords operating without the correct licences, as selective licensing schemes expand and enforcement budgets remain stretched.
Data tools target non-compliant landlords
Several councils across England are now using platforms that analyse financial data to flag properties that may be operating as unlicensed HMOs or breaching selective licensing requirements. These systems cross-reference the number of financial identities linked to an address over time to highlight potential compliance issues.
Multiple financial identities appearing at a single address in a short period can indicate shared occupancy, helping enforcement teams identify properties that may require licensing but have not applied.
The technology can also cross-reference data with planning consent records to identify section 257 and section 254 HMOs that may lack proper permissions or licences.
Enforcement resources under pressure
The growth of such tools comes as housing enforcement teams face significant resource constraints. Many councils have seen budgets cut in recent years, leaving them without the capacity to pursue non-compliance proactively through traditional methods such as door-to-door inspections.
For landlords operating within the law, the expansion of selective licensing schemes creates both compliance costs and competitive disadvantage when neighbours ignore the rules. Technology that helps councils target genuine rogues rather than pursuing paperwork errors could help level the playing field.
Licensing schemes continue to expand
The use of enforcement technology coincides with a wave of new licensing schemes coming into force across England. Manchester City Council has expanded its selective licensing areas, Reading Borough Council is rolling out a borough-wide additional licensing scheme for HMOs from March 2026, and numerous London boroughs have introduced or extended their own schemes.
Under the Renters Rights Act, councils have powers to impose civil penalties of up to £7,000 for initial breaches and £40,000 for repeat offences, providing greater incentive for local authorities to invest in enforcement tools that can identify non-compliant properties efficiently.
Opinion
Compliant landlords have long argued that licensing schemes penalise those who follow the rules while doing little to catch genuine rogues. If enforcement technology can help councils focus their limited resources on the worst offenders, it could make the licensing system fairer for everyone. The question is whether cash-strapped councils will invest in tools that improve outcomes rather than simply generating more licence fees from the same law-abiding landlords.
