Mandatory licensing for landlords appears to be gaining some ground in London. The first to introduce this was the London Borough of Newham, this is where Stratford & the London Docklands are located. Many international investors have bought into areas like Stratford & the London Docklands.
Status of Mandatory Landlord Licensing
1. Newham - In force. Check the council website here. (Stratford, London Docks, all in Newham)
2. Barking & Dagenham - To start 1st Sep 2014.
3. Enfield - Under consideration, very likely to be approved.
Landlords in the borough will need to show that they are "fit and proper persons", which could involve a Criminal Record Bureau check. They will also need to demonstrate that any gas and electrical installations have a safety certificate, tenants are on written tenancy agreements and anti-social behaviour and repairs are effectively managed.
According to Newham mayor Sir Robin Wales, "We want to ensure that private sector rented properties are well managed and meet a good standard. We also want to deal with the crime and anti-social behaviour that is sometimes associated with bad private sector rented housing.
Property Licensing Fees
In Newham, the fees are £500 for a license which lasts 5 years. However, the fees are greatly reduced for new-builds (£150) that haven't been rented out before. Full details of fees can be found here.
Impact on Landlords & Potential Delays
More costs, more paperwork and potential delays in getting the license.
According to Newham Council website,
"Once you have made your application tacit consent does not apply.
"We will tell you and any other interested parties whether we plan to grant to refuse a license within eight weeks of receiving your application.
"This will be followed by a 21-day consultation period (!) which gives you and all interested parties the chance to ask questions, challenge our decision or make comments.
"We will give you the notice that grant or refuses a license, as well as a copy of the license at the end of this consultation period."
Conditions of License
Take note that this license is not just about paying the fees. It imposes many conditions on the landlord. Read the detailed terms and conditions on the Newham Council website.
Further web resources:
https://www.newham.gov.uk/Pages/ServiceChild/Private-rented-property-licencing-types-of-licences.aspx
http://www.theguardian.com/money/2011/sep/29/newham-landlords-licensing-scheme
The local councils is getting very innovative in getting tax money these days. Rentals of properties is now a licensed business these days. Do you think there's any linkage between these licensing requirements and the demographics of the neighbourhood like the Dockland or Stratford?
ReplyDeleteFrom what I gather, the main purpose of the licensing regime is not to raise revenue. They are not going to raise much with a £500 license valid for 5 years, I.e. Just £100 per year. It would have been much easier for them to just raise council tax, if they wanted more money.
DeleteI think the real reason for licensing is to give them more teeth to deal with landlords that do not maintain their properties well, and also to curb anti-social behaviour. The terms and conditions of the license look rather long and onerous and it basically gives the Council power to deny the property owner the permission to become a landlord.
You are right. Stratford annd parts of East London is actually quite a rough neighbourhood. Maybe it is to control tenancies and who stay there. Estate management won't be much of a problem but who stays there is.
ReplyDeleteOn a positive note, maybe this licensing is just what the council needs to spruce up the place. Time will tell.
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