Letting agents and landlords with rental homes in the London borough of Newham have been sent notices that they must license all properties.
Mandatory blanket licensing of all rental properties in the borough comes in on January 1.
Newham Council is charging £150 for applications made before the end of this year. Afterwards, the fee for the five-year licence will rise to £500.
Failure to apply for a licence by the end of the year will be an offence, the council is warning, and may lead to a fine of £20,000. The council says that applications must be made by January 1.
Although it will normally be the landlord who is the licence holder, that is not necessarily the case. The licence holder should be ‘the most appropriate person to hold the licence’ and could be the managing agent. Whoever holds the licence is responsible for adhering to its conditions.
Not having a licence will also mean that it will be impossible to use a S.21 procedure to gain possession, and risks having the local authority take over the management of the property.
The authority is the only one (so far) in England and Wales to introduce borough-wide licensing of ALL private rental properties, regardless of their size and whether or not they are HMOs. However, Shelter is urging all other local authorities to follow suit.
The ability to introduce licensing over and above the statutory licensing of certain HMOs is available to local authorities under additional and (in this case) selective licensing powers.
Local authorities are also free to introduce planning regimes whereby landlords must apply for planning permission if they plan to change tenants, for example, from a single family household to a small group of sharers.
It is possible to apply online for a licence from Newham Council, but be aware that the process will take about 40 minutes per property.
Bearing in mind that an estimated 35,000 rental properties in Newham – one in three of all households in the borough – will have to be licensed, this collectively works out to a lot of man hours.
Any managing agent or tenant who has not received a notice from Newham Council should contact the authority on 020 3373 1950 and ask for the Property Licensing Team. Alternatively, email propertylicensing@newham.gov.uk
Comments
"Despite what the report says of course most landlords would be against this.
This is because most of them are dodging some sort of mandatory payment such as tax or the like. "
And where is your evidence of this grand scale fraud?
Most landlords will be against it because it offers them nothing in return; what checks are Newham proposing to carry out on each property and landlord? how will they spend the money raised to rid the industry of rogue landlords and agents? indeed, will they even spend the money raised ridding the area of rogue landlord and agents? until they answer those questions and others no landlord is going to be for it.
"I feel however the local authorities time would be better suited regulating the letting agents in their borough!"
Yes it would, but they could do that now couldn't they? its called Trading Standards. Licensing every landlord isn't going to change that.
What they are proposing is no better than an agent who charges £500 for fees but doesn't want to confirm details of what its going to be used for.
Despite what the report says of course most landlords would be against this.
This is because most of them are dodging some sort of mandatory payment such as tax or the like.
I feel however the local authorities time would be better suited regulating the letting agents in their borough!
Apologies for some reason the end part of the address isnt appearing it is - february2012.pdf
http://www.newham.gov.uk/nr/rdonlyres/753268e3-a034-4fc5-9343-43b9019f9ee4/0/rentedpropertylicensingindependentreportofinitialconsultationfebruary2012.pdf
http://www.newham.gov.uk/nr/rdonlyres/753268e3-a034-4fc5-9343-43b9019f9ee4/0/rentedpropertylicensingindependentreportofinitialconsultationfebruary2012.pdf
or
http://bit.ly/QDL6bG
Patricia
Can't find the page the web says so!
Help us with a better link please.
So much for consultation take a look at the consultation paper:
PROPOSED SELECTIVE LICENSING SCHEME
FOR PRIVATE RENTED PROPERTIES IN NEWHAM
INDEPENDENT REPORT OF CONSULATIONS
EXECUTIVE SUMMARY
February 2012
(their misspelling of consultation, not mine)
http://www.newham.gov.uk/NR/rdonlyres/753268E3-A034-4FC5-9343-43B9019F9EE4/0/RentedpropertylicensingIndependentreportofinitialconsultationFebruary2012.PDF
It looks like, overall, there were more people against the proposals than were for it. Ironically the standard of council housing in this Borough is probably the worst in the Country, with only half the housing regarded as 'decent'.
Jimmy's comments are interesting and if accurate, I assume our trade associations would be au fait ????
It is telling that only one borough has taken the decision to do this - presumably the chance to earn millions of pounds for doing absolutely nothing would have meant licensing being introduced by every borough a long time ago. Sounds a little like the Manchester Building Society who is attempting to take away trackers from their borrowers, citing a very ambiguous clause in their offer of advance (and nowhere else in their literature) that they can do this - and other lenders and building societies are 'looking on with interest'. Which means lets see if they get away with it and we will do the same. It all smacks of yet another three card trick that Labour so efficiently pulled off for 13 years and continue to do with Labour run councils. It is purely a money making stunt with absolutely no intention (let alone resources) to actually sort out the rogue Landlords.
I agree with what Newham are doing. You will soon see the rats scurrying to higher ground.
As long as the registration fee goes into providing better services in the borough
Joe
Sir Robin 'Hood' Wales is a control freak. Next it will be rent capping. Yes the council has the right to do this - but it will drive the rogue element further underground. I can see lots of investment properties up for sale, prices falling and Newham buying them to meet their target housing stock expansion.
@Jimmy on 2012-10-02 08:47:09
Very well put and I am of the opinion pretty accurate.
What is the real purpose and what right have they?
Also, Shelter should zip it, they are not doing anybody any favours.
En mass, I suggest you issue Section 21 notices to all tenants. Let Newham sort out that little mess just before Christmas!
Councils do not really have this kind of power. It is all a mind game. Councils are responsible for managing services on a local level as a delegation from central Government.
Landlords only become part of the game when they give their consent to be governed by the legislation. For example, they give their consent by registering. That's the trick. To avoid penalty, do not register. In fact, serve notice to the local authority stating that being a landlord is none of the council's concern and you have no wish to contract with them, or engage with them in any way. The same principle would apply to the litter patrol that struts around the high street. The only court that would have jurisdiction would be a Court of Admiralty as this an attempt to make commercial contract.
This is the type of local government that sleeps better at night knowing there is a microchip in your wheelie bin.
A licence is authorisation to perform an action you have the lawful right to perform. That is just a scam. Any elected official engaged in such activity should be removed from office. Are you a landlord in Newham? Are you an Elector in Newham. Well the councillors work for you. Not the other way around.
Agree to the system and you agree to pay a £20,000 fine. Disagree, and Councillor Bob is looking for work.
"Mandatory blanket licensing" ?
What are the benefits?
"Money making wheeze" would be a better name?