In certain parts of the country, landlords are who are renting their property out privately, are being made aware that licensing is being introduced to their area. This could be for a number of reasons and could be for a fixed period, or indefinitely, depending on the type of licence.
It’s important for landlords to understand the different types of licences and the potential costs and fines that could be incurred. We have detailed a brief description below of the 3 licences currently operating in England and although Scotland and Wales do operate a similar schemes, advice should be sought locally.
This licence is required when the property is let out to 5 or more people, who form 2 or more households and who share kitchens and bathrooms.
There is a huge variation of this licence as it has been introduced by local councils who each have different requirements or who may not require additional licensing at all. We strongly recommend that you contact your local council for advice. These licences are usually required when renting to a minimum of 3 or 4 people, who form 2 or more households and who share kitchens and bathrooms.
Selective licensing was introduced into the private rental sector to address the impact of poor quality private landlords and anti-social tenants. The scheme provides for the regulation of ‘houses’ as defined by section 99 of the Housing Act 2004.
An area may be designated for selective licensing either (i) if the area is (or is likely to be) an area of low housing demand or (ii) the area is experiencing a significant and persistent problem caused by anti-social behaviour and some, or all, of the private sector landlords are failing to take action to combat the problem that it will be appropriate for them to take. A designation can last for 5 years and can be renewed.
Licences can vary from region to region, so we always recommend that you contact your local council who will advise you of the costs applicable. The application process can be very time consuming and as your chosen agent, we can make the licence application on your behalf for a fee. Please see our fee structure or give one of our team a call to discuss.
The penalties imposed on a landlord can be severe and can include: