How Trying to Save £80 a Month Cost One Landlord £37,726

That is £4,191 per property. He had nine. And the clock is still running.

There is a landlord we met at the National Landlord Investment Show in March. He was based overseas but back in the UK on a visit to family and was considering if his current managing arrangements were fit for purpose, especially with his properties shortly to be subject to selective licensing. We explained Compliance Shield, walked him through what Wandsworth's new selective licensing scheme meant for his portfolio, and showed him exactly what the exposure looked like if he delayed.

He liked what he heard. But he wanted to shop around. He thought his current agent might take on the licence responsibility. And if he could save a few pounds a month in the process, why wouldn't he?

Fifty-one days later, he called us back.

He still did not have a licence.

What 51 days of doing nothing actually costs

Wandsworth's Phase 2 selective licensing scheme came into force on 1 April 2026. It covers all privately rented properties in East Putney, Northcote and West Putney. If your property sits in one of those wards and you do not hold a licence, you are committing a strict liability offence under section 95(1) of the Housing Act 2004. Every single day.

At a monthly rent of £2,500, the maths is unforgiving.

That £4,191 is not a fine. It is not a penalty invented by the council. It is the rent already collected — money already in the bank — that a tenant or the local authority can apply to claw back through the First-tier Tribunal under a Rent Repayment Order.

There is no defence of "I didn't know." There is no defence of "my agent was sorting it." Strict liability means the offence is the simple fact of operating without a licence. Nothing more is required.

The gut-punch

This landlord did not have one property in the designated area. He had nine.

Sometimes spending time counting the pennies is costing you thousands. £36,502 of entirely avoidable risk, created not by negligence, not by ignorance, but by trying to save a few pounds a month.

Why overseas landlords are particularly exposed

The Wandsworth selective licence does not allow an overseas landlord to simply apply in their own name and be done with it. A licence holder must either reside in the UK or, if a company, be registered here. The person named on the licence is legally accountable to the council — for conditions, for inspections, for enforcement notices, for anti-social behaviour procedures. It is a meaningful legal commitment.

This is exactly why many existing letting agents are refusing to do it. They will collect the rent. They will manage the day-to-day. But they will not put their name on a licence that binds them to council conditions and exposes them to liability. Some have not gone through the necessary compliance checks. Others have not engaged with the scheme at all.

So the landlord is caught. Their current agent won't step up. Finding a new agent who will takes time. And while all of that is happening — while emails are being sent, meetings are being had, decisions are being deferred — the metre is running at £82.19 a day. Per property.

The clock got more expensive on 1 May 2026

There is a detail that most landlords — and many agents — have missed entirely.

The Renters' Rights Act 2025 doubled the maximum Rent Repayment Order from 12 months to 24 months' rent, for qualifying offences committed on or after 1 May 2026. That change came into force just 30 days into Wandsworth's Phase 2 scheme.

The longer a landlord waits, the more of their unlicensed period falls under the new, higher cap. The direction of travel is one way only.

A retrospective application does not fix this

This is the misconception that costs landlords dearly. Applying for the licence now does not erase the exposure already accumulated. The offence was committed on every day the property was unlicensed. A retrospective application stops the clock from running further — it does not rewind it.

The landlord who called us back after 51 days has £37,726 of exposure that cannot be undone. What can be done is stop it growing, get the licences applied for correctly, and ensure the application is as strong as possible. Tribunal decisions on RRO amounts do take conduct into account. Acting promptly, once aware, is materially better than continuing to delay.

What Compliance Shield does

Compliance Shield — which includes Licence Pro — is designed specifically for landlords who need more than a letting agent willing to collect rent. It gives overseas landlords a properly qualified licence holder, handles the Wandsworth application process, manages ongoing licence conditions, and provides the documented compliance record that matters if a tribunal ever scrutinises your conduct.

The cost is £80 per property per month.

For nine properties over 51 days, that is £1,224. For the same landlord, the exposure accumulated in those same 51 days was £37,726.

That is the price of procrastination. And it compounds every single day.

Daily rate calculated as £2,500 × 12 ÷ 365 = £82.19. RRO exposure represents rent paid during the unlicensed period, recoverable by tenant or council under s.95(1) Housing Act 2004. Maximum RRO for offences on or after 1 May 2026 is 24 months' rent per property under the Renters' Rights Act 2025. This article provides general guidance on selective licensing obligations and does not constitute legal advice. Landlords seeking advice on specific circumstances or facing enforcement action should consult a qualified legal professional. Landlord Lab UK Ltd | landlordlab.co.uk