The prospect of a Government scheme to protect tenants from cowboy landlords has been welcomed by housing campaigners.
Under the proposal, which has yet to be confirmed by the Government, private landlords would have to pay around £50 to register with a national body before letting a residential property.
They would have to comply with certain standards and those who fail to carry out repairs or who intimidate tenants could be struck off.
The plans are expected to be announced n a Green Paper next week and follow a move by a housing group to introduce a similar licensing initiative.
Adam Sampson, chief executive of housing charity Shelter, said: "It is high time the Government acted to introduce statutory licensing for all letting agents - something that Shelter has been campaigning about for some time.
"All consumers should have the right to expect a professional letting service, and have access to redress when problems arise."
He also said it was a "step in the right direction" that the Association of Residential Letting Agents (Arla) plans to make all of its members part of a licensed scheme.
They would require all landlords to hold a professional letting qualification, have professional indemnity insurance and have schemes in place to protect clients' money,
Ruth Lilley, head of membership and professional development at Arla, said: "For too long the rental sector has been seen as the black sheep of the property market with a lack of regulation.
"The Arla Licensing Scheme will create the gold standard for letting agents in the UK, offering consumers best practice service and advice - as well as a commitment to the protection of their money."
The National Association of Estate Agents plans to launch of its own licensing scheme later this year.
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