From 23 December 2024 local housing authorities in England do not need to obtain confirmation from the Secretary of State if they wish to implement a selective licensing scheme – of any size.
As a result local authorities are increasingly adopting selective licensing schemes, which require landlords to obtain licenses and meet certain conditions, with penalties for non-compliance.
Research from Yuno showed that the introduction of selective licence schemes had little impact on improving standards, although local housing officers report that it can help improve enforcement ‘on the ground’ especially as they can impose civil penalties.
Which areas are affected?
According to data from Yuno, there are 37 licensing schemes across England that are currently under consultation or could be coming soon to a council by which your properties will be affected by, some key schemes include:-
Blackpool – Selective Licence Scheme
Carmarthenshire – Additional Licence Scheme
Gateshead – Selective Licence Scheme
Gelding – Selective Licence Scheme
Lancaster- Selective Licence Scheme
Manchester – Selective Licence Scheme
Mansfield – Selective Licence Scheme
Newcastle upon Tyne- Additional Licence Scheme
North Lincolnshire- Selective Licence Scheme
North Yorkshire – Selective Licence Scheme
Reading – Selective Licence Scheme
Rochdale – Additional Licence Scheme
Salford – Selective Licence Scheme
Sandwell – Additional Licence Scheme
Stockton-on-Tees – Selective Licence Scheme
Walsall – Additional Licence Scheme
London licensing schemes
City of Westminster – Selective Licence Scheme
London Borough of Barking and Dagenham – Additional Licence Scheme
London Borough of Enfield – Additional Licence Scheme
London Borough of Wandsworth – Selective Licence Scheme
London Borough of Waltham Forest – Additional Licence Scheme
This is just a selection of licence schemes/consultations – so landlords and agents need to be alerted to the fact they may well be implemented shortly and check if their area is going to be affected.
Negative implications
Although the local housing authorities must consult for at least 10 weeks on the proposal, Yuno said it is aware that the reach and effectiveness of these consultations can vary dramatically.
In some cases, this means they can be implemented without the landlord’s knowledge unless they are proactively keeping up with lettings legalities or their rental property is being managed by a qualified agent.
Paul Conway, chief executive of Yuno, said: “This will increase the chances of all landlords & agents being caught out by widening licensing in an area, especially if it’s not well publicised. It could also increase their ongoing costs due to the licence fee charged.”
Fees for new applications range from being as high as £1,225, in Leeds, versus others such as Ashfield which charge £350.
Not licensing a property correctly could currently lead to fines of up to £30,000 per offence.
