Council With Strong Record Tackling Rogue Landlords Has Licensing Extension Rejected

A London council with a strong record on tackling rogue landlords has had an application to extend its licensing scheme rejected by MHCLG. In response to the Council’s pre-Christmas application, Housing Secretary Robert Jenrick MP has indicated he is “not minded to approve” the extension of the selective-licensing scheme. As it asked of Liverpool, MHCLG says it needs more evidence. Read more on 24housing.

https://www.24housing.co.uk/news/council-with-strong-record-tackling-rogue-landlords-has-licensing-extension-rejected/

Nottingham Licensing Scheme A Farce

A landlord licensing scheme in Nottingham has so far managed to issue full licences to fewer than three per cent of the applications received. In August 2018, Nottingham City Council introduced a Selective Licensing Scheme across many parts of the city as a key part of its efforts to address the quality and management of private rented housing. Figures provided to the Council’s Overview and Scrutiny Committee however show that by August 2019, whilst 17,523 applications for a licence had been received, just 472 final licences had been issued. The council estimates a total of 24,000 applications are eventually likely to be received. Read more on the RLA website.

https://news.rla.org.uk/nottingham-licensing-scheme-a-farce/

Nearly 17,000 Applications Over First Year Of PRS Improvement Scheme

Just over a year ago, Nottingham city council introduced a new housing licensing scheme to help tackle issues such as antisocial behaviour to poor property conditions – and it has seen nearly 17,000 applications so far. “This scheme has already helped to improve rented properties across the city, and it is important that landlords get the homes they own licensed and work with the council to help improve renting standards in the city and make lives better for tenants living in these homes,” said Cllr Linda Woodings, council portfolio holder for planning, housing and heritage. The scheme runs alongside the other licensing initiatives schemes operating for HMOs. Read more on 24housing.

https://www.24housing.co.uk/news/nearly-17000-applications-over-first-year-of-prs-improvement-scheme/

Here We Go Again: More Councils Want Licensing Schemes

Leicester is the latest council to begin consultations on selective licensing in six parts of the city - with the threat that other locations could be considered in future. It has launched a public survey on selective licensing in the six areas, with the claim that the initiative “would help safeguard would-be tenants, who would know their landlord is correctly licenced to operate” and “would also help finance action to tackle ongoing problems of antisocial behaviour.” The proposed scheme would cover about 20 per cent of the city’s private rented sector - so future schemes extending beyond that limit would need to be confirmed by the Secretary of State. Read more on the Letting Agent Today website.

https://www.lettingagenttoday.co.uk/breaking-news/2019/3/here-wo-go-again-more-councils-want-licensing-schemes

Licensing ‘Fails’ Tenants And Good Landlords

The Residential Landlords Association (RLA) have responded to research published by Direct Line revealing that the costliest landlord licensing schemes are 21 times more expensive than the cheapest. The researched report analyses licensing charges between local authorities, showing a large variance, with the cost of a new licence ranging from just £55 to £1,150, 21 times more expensive. In Liverpool, the cost of a licence for a first property is £412, whereas in Salford it is over 51 per cent higher at £625. The report further highlights that the average landlord licence across the UK costs £591. Read more on 24housing.

https://www.24housing.co.uk/news/rla-licensing-fails-tenants-and-good-landlords/

Nottingham Is Latest Licensing Scheme To Be Failing

Selective and Additional Licensing has been a contentious issue ever since it was first introduced back in the UK in 2007 in Salford, but councils continue to roll out new licensing schemes on a frequent basis with no signs of abating. Nottingham is one of the latest schemes to be introduced. Figures released by Nottingham City Council reveal that only 13,450 applications have been received since the Selective Licensing scheme began on 1 August this year. It is estimated that around 32,000 properties in the city require a licence. There is now a backlog of applications, and there have been reports that thousands of applications are being turned down because of 'paperwork errors'. Read more on the ARLA website.

http://www.arla.co.uk/news/november-2018/nottingham-is-latest-licensing-scheme-to-be-failing/

Incompetent' Council Kicked Out Of Government Housing Scheme

A city council has been branded “incompetent” and kicked out of a Government scheme designed to protect tenants against rogue landlords. The selective licensing scheme allows councils to keep tabs on landlords and make sure they are providing good accommodation. Under the scheme, landlords must obtain a licence to ensure they are doing the right thing and meeting safety and quality standards. Brighton and Hove City Council was granted permission to operate a selective licensing scheme. But now Housing Minister Heather Wheeler has written to the council to revoke its licence. A source close to the minister said the decision was due to “incompetence, mismanagement and a lack of due diligence”. Read more on the Argus website.

https://www.theargus.co.uk/news/17193755.incompetent-council-kicked-out-of-government-housing-scheme/

New HMO Rules Come Into Effect In England On 1 October 2018

New regulations to bring mandatory licensing to all multi-occupied properties where there are five or more people, forming two or more separate households. The main change is:

·         Altered definition of an HMO under the Housing Act 2004: for licensing purposes, from 1/10, an HMO will be any property occupied by five or more people, forming two or more separate households.

This contrasts with the existing HMO definition which is a property occupied by 5 or more people, forming two or more separate households and comprising three or more storeys.

Read more on the RICS website.

http://www.rics.org/uk/news/news-insight/news/new-hmo-rules-come-into-effect-in-england-on-1-october-2018/

A Buy-To-Let Register By The Back Door?

Increasing numbers of local councils are introducing licensing schemes for landlords, costing them up to £1,000 to register. One in five boroughs are now operating such schemes, which can require all landlords in a given area to obtain a licence or face criminal charges.  Their introduction leads to the question of whether councils are ushering a potential buy-to-let register by the back door, as calls for national landlord licensing have so far not been acted on. n some cases, landlords could have to fork out up to £1,000 to gain a licence, at a time when tax and regulatory changes are forcing many smaller landlords out of the sector. Read more on the This is Money website.

http://www.thisismoney.co.uk/money/buytolet/article-5945643/Brits-spend-time-searching-holiday-mortgage-research-finds.html

Mandatory HMO Licensing Extension To Commence In October

Regulations laid in Parliament confirm that the long-awaited extension of Mandatory HMO Licensing will come into force from 1st October 2018. The regulations replace the previous prescribed description of HMO, removing the three-storey rule and bringing purpose built flats where there are up to two flats in the block into scope of mandatory licensing. From 1st October, properties that meet all of the following criteria will be subject to mandatory licensing:

·         is occupied by five or more persons;

·         is occupied by persons living in two or more separate households; and

meets—

·         the standard test under section 254(2) of the Act;

·         the self-contained flat test under section 254(3) of the Act

·         the converted building test under section 254(4) of the Act.

Read more on the NLA website.

https://www.landlords.org.uk/news-campaigns/news/mandatory-hmo-licensing-extension-commence-in-october

Candid Commons Committee Clash Over Landlord Licensing Schemes

A London Mayor has been blunt about what bad landlords should face in his borough – lose your business; lose the house. But Sir Robin Wales, Mayor of Newham, had his borough’s record on bad landlords equally bluntly thrown back at him by David Cox, chief executive of ARLA Propertymark, during a Communities and Local Government Committee evidence session on the Private Rented Sector. Newham pioneered borough-wide landlord licensing. Cox told the committee landlord licensing “has never worked and never will work”. Read more on 24housing.

http://www.24housing.co.uk/news/candid-commons-committee-clash-over-landlord-licensing-schemes/

New HMO Licensing Rules Expected In October

The Government is planning to introduce new rules on licensing Houses in Multiple Occupation (HMOs) this October, the Housing Minister, Dominic Raab, has confirmed. The Government set out its proposals to extend HMO licensing last year, involving mandatory licensing for properties, regardless of height, that are occupied by five or more people from two or more households. Currently, mandatory HMO licensing only applies to properties with three or more storeys that are occupied by five or more people from two or more households. The new rules still have to be approved by Parliament. However, in response to a written question by Liberal Democrat MP Wera Hobhouse, Raab set out a timetable for their introduction. Read more on the Landlord News website.

https://landlordnews.co.uk/new-hmo-licensing-rules-october/

Pilot Licensing System For Airbnb-Style Short Lets

Kensington & Chelsea council says it is preparing a new licensing system after receiving 91 complaints in the last two years of homeowners renting out their property on short lets for more than the current maximum of 90 days a year. The council says that under the current rules it has only been able to issue 11 people with enforcement notices ordering them to desist. In advance of Government action the council will consider a pilot licensing scheme to protect key areas. Read more on the Evening Standard website.

https://www.homesandproperty.co.uk/property-news/kensington-chelsea-to-curb-antisocial-behaviour-with-pilot-licensing-system-for-airbnbstyle-short-a117141.html

Private Rented Housing: Licensing – Parliamentary Written Answer

Wera Hobhouse: To ask the Secretary of State for Housing, Communities and Local Government, whether the Government plans to extend mandatory licencing schemes for landlords in the private rented sector.

Dominic Raab: [Holding answer 18 January 2018]: The Government proposes to extend the scope of mandatory houses in multiple occupation (HMO) licensing, so that a licence is required for HMOs with five or more occupiers. We published our response to our HMO reforms consultation in December 2017, and we plan to lay the necessary regulations before Parliament shortly with a view to bringing them into force (subject to approval) in October 2018.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2018-01-15/122708

Council’s Selective Licensing Renewal Approved

Newham Council’s application to renew its borough-wide selective licensing scheme has been approved by the Communities Secretary, Sajid Javid MP. The Council has confirmed the approval in its publication of the Designation of an area for Selective Licensing. Any privately rented property within the designated area, that is not already covered by mandatory HMO licensing or the additional HMO licensing scheme, will need to be licensed. Earlier this year Newham Council consulted on plans to renew their borough-wide selective licensing scheme, and subsequently agreed to go ahead with the renewal in June. You can read the NLA's response to that consultation here. Read more on the NLA website.

Committee Announces Inquiry Into Combatting ‘Rogue Landlords'

The Communities & Local Government Select Committee has announced a new inquiry into combatting ‘rogue landlords’. The inquiry will focus on the role of local authorities in the private rented sector (PRS) and whether they have sufficient powers to deal with ‘rogue landlords’. The inquiry will also examine barriers to intervention in the PRS, whether landlord licensing schemes are actually achieving their goals and the effectiveness of complaint mechanisms for tenants. Read more on the NLA website.

Plan To Introduce Landlord Licence Gets The Green Light

Controversial plans which could see landlords in Nottingham have to sign up for licences has been officially approved by the council, and the matter has now been sent to the central government. The scheme aims to improve housing standards in the city’s private rented sector, and after extensive consultation with landlords and tenants, the proposals have changed considerably. The council's executive board voted unanimously to approve the revised selective licensing scheme. When the scheme was first announced, in February, the council said it was being proposed to raise standards, reduce anti-social behaviour, and tackle rogue landlords. Read more on the Nottingham Post website.

Two More Selective Licensing Consultations

A year after their first licensing consultation and only a month after their second, Manchester City Council have started another Selective Licensing Consultation. Selective Licensing applies to all private rented sector houses that are not licensed under HMO licensing. 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 that local authorities attribute to private sector landlords failing to take action to combat against unruly tenants. The holders of the licence will be required to comply with licensing conditions, some of which are mandatorily imposed by the Housing Act, and local licensing conditions from the council itself.  Read more on the RLA website.

NLA Warns Landlords To Get A Licence Or Face A £20k Fine

The National Landlords Association is encouraging landlords in Ashfield to become accredited to take advantage of discounted property licensing fees. From May 1, landlords in Ashfield will require a licence for every property they let, or they could be subject to a £20,000 fine. The scheme has been set up to tackle problems identified by the Council as poor quality of rented properties, poorly behaved tenants and anti-social behaviour. However, landlords will receive a £100 discount when applying for licences, so long as they are accredited with an appropriate body. The full cost of a licence per property is £350 and is valid for five years. Read more on the Property Reporter website.

More London Authorities Open Licensing Consultations

Newham and Bexley have become the most recent London authorities to start licensing consultations. Both authorities have cited supply and demand problems and increased anti-social behaviour as the need for a change in licensing. The introduction of a licensing scheme will require the condition of a property to comply with specific standards relating to fire safety, provision of amenities as well as space standards alongside the licence holder will also be required to be deemed suitable by the local authority. Bexley is considering implementing a selective licensing scheme for private rented properties due to the high number of complaints the council receives of anti-social behaviour or nuisance behaviour per property. Read more on the RLA website.