The UK’s second largest landlord licensing scheme is about to launch.
Councillors in Nottingham are putting the final touches to a selective licensing zone that covers an estimated 32,000 private rented homes across the city.
The largest scheme started in January 2013, in Newham, East London, and manages more than 35,000 private rented homes.
In Nottingham, the licensing area expects to take in 91% of the homes in the city and surrounding neighbourhoods from August 1. The city council web site has a free tool that helps landlords identify if a rental property is in the licensing designated area.
The licence will last for up to five years and is issued for each property, not for each landlord.
Applications are already under process.
The licence cost varies between £480 for accredited properties and £780 for non-accredited homes.
Penalties for failing to licence a rented home include unlimited fines or up to £30,000 depending on the prosecution route adopted.
“The council believes that the fee should not lead to landlords increasing rent. The council recognises that some landlords may choose to do this,” says the council web site.
“The council has worked hard to offer lower fees to accredited landlords, with savings of £300 on the licence applications fee. If landlords do increase rents, this should be following the correct, legal procedures and should not exploit this opportunity. Income from the licence fees goes towards the cost of setting up, operating and delivering the schemes.
“The council is not permitted to make a profit from the scheme.”
The selective licensing scheme covers buy to let homes not already netted by house in multiple occupation licensing.
“The scheme is aimed at benefitting those good landlords who may struggle to get the rent they want because of the poor conditions of nearby properties. It should also get rogue landlords to change their behaviour or get out of the market altogether,” added a council statement.
More details and how to apply for the selective licensing scheme in Nottingham are here.
Sefton Council (where I have 7 properties) are beginning their licensing of landlords scheme from 1st September. I have no problem with this. However, I feel like I am being discriminated against as my properties are in a disadvantaged area of Sefton (Bootle and Litherland) and all landlords in these areas have to obtain licences whereas in other, more affluent, parts of Sefton such as Formby, Crosby and Southport, only HMOs require licences. The reason is because approximately 25% of houses privately rented in Bootle are of poor quality. Well mine aren’t. So why am I being penalised?
Sadly the above landlords comment are all to familiar to what is happening to our profession
Firstly I agree with the landlord being discriminated against but sadly he/she has stated that he is fine with their licencing system ????
WHY as stated he/she has good properties so why does he/she need a licence and why would you readily accept this as the norm it is extortion of your profit
With regard to Nottingham councils proposals
1) It will force up rents why would anybody want to subsidise this greedy councils enforced licencing scheme
2) They have not worked hard on keeping licences low for accredited properties it just an excuse to hit the non accredited landlords with a higher fee for resisting the councils efforts to worm their way into their business. I am a good Landlord and I don’t need or want their little gold star on my properties
3) The council will make sure they are not making a profit but they will be making sure any profit made be off set against their employee salaries and I will bet it will be also be subsidising salaries that have nothing to do with the running of the scheme
4) How can such a scheme coming with cost and over regulation be of any help to a struggling landlord and as to rogue landlords they along with good landlords are constantly being reported to local authorities by grumbling tenants so the council have a list of the potential problem people and it is the councils job (nobody else’s) to monitor and deal with them not have us landlords subsidise their responsibilities
It is clear to me we (landlords) must form a dedicated action group to fight every corner of the current government and local authority onslaught of over regulation and scandalous fees and draconian fines for misdemeanour
Cheers
Gordon Hesp