Last updated on August 18th, 2015 at 02:48 pm
Introduced within the Housing Act 2004, selective licensing is intended to tackle the problem of poor quality private landlords and anti-social tenants. Councils can designate areas that have low housing demand or suffer from significant and/or persistent anti-social behaviour as selective licensing areas for a maximum of five years.
Within the scheme landlords, or their agents, have to apply for a licence for each property that they rent out in the designated area. If the scheme is approved in Sheffield the licence is likely to cost between £500 and £1000 (depending on how early a landlord applies) per property for the 5 year period.
In order to get a licence, landlords will have to provide evidence of a permanent residential address, date of birth and photo of themselves (or their agent if they are using one) along with a copy of a current gas safety certificate. The council will then assess whether the applicant is a fit and proper person (or the most appropriate person) to be given a licence, which will include looking at relevant criminal convictions, previous landlord experience and any previous poor compliance. Landlords may also have to prove that any furniture within the property complies with fire regulations, that electrical equipment and installations are safe and provide a property layout and energy performance information. The council may also insist that smoke alarms are installed in properties, that any necessary repairs and other legal responsibilities are carried out timely, and that landlords take action to prevent anti-social behaviour – which could include issuing the tenant with a tenancy agreement that includes procedures for tackling it. Landlords could also have to obtain references from tenants before allowing them to take residence.
Failure to obtain a licence could mean fines of up to £20,000 for landlords and failure to comply with a licence could see a landlord being fined up to £5,000 and having their licence removed.
Sheffield Council has indicated that it has selected Fir Vale and Page Hall as a designated selective licensing area for several reasons including: house prices falling much faster than the rest of the city, leading to less owner occupiers; landlords buying up property because of the low prices and lack of demand, which increases the number of short term renters with no real commitment to the area; rents being lower than average, which attracts people on low incomes; a high number of Victorian terrace properties, which, due to their age, are likely to have health and safety issues; increased overcrowding; historic difficulty in engaging with landlords and a minor number of landlords who act outside the law; reported increase in anti-social behaviour.
The council hopes that the move will enable it legally tackle anti-social behaviour linked to rented housing, tackle neigbourhood issues as a whole, improve the area and make it more popular to live in and give landlords a clear message that bad practice is not acceptable.
A 10 week consultation period will finish in September 2013, and if approved, it is likely that the selective licensing scheme will start in January 2014.
Graysons WE’s experienced property team can give you advice and guidance on the best way to rent or lease property to suit your own particular needs, ensuring that your interests are property protected. Contact us for a confidential discussion, or to make an appointment.
