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Landlord licencing scheme boundaries released by Newham Council

Published 10/07/2012

Mark Alexander, landlord since 1989 and founder of Property118


Details of the highly controversial Landlord Licencing Scheme boundaries have been released by Newham Council. As of January 2013 it seems likely that landlords within the catchment area could have to pay landlord licencing scheme fees of as much as £500 a year for each property they wish to let or risk fines of up to £20,000. Do not be fooled into thinking this only affects landlords with property in Newham. If this scheme is deemed to be a success how long do you think it will be until it is rolled out Nationally?

Landlord Licencing scheme debate - Mark Alexander and the Mayor of Newham

What do you think this caption should read?

As can be seen from this picture during a debate I had with the Mayor of Newham earlier this year I was none too impressed with his proposals back then. At that time he was trying to assure me that landlord licencing scheme fees would only be £30 a year! I think we ought to have a caption competition for this picture don’t you? Please leave your caption in the comments section below this article. I will add my favourite caption to the picture. As much as the proposed landlord licencing scheme may make you want to swear, please do not use foul language.

Details of Newham Council’s selective and additional licensing scheme have been made available online that state the boundaries of the area in question requiring licences, as of January 2013. The council is the first to undertake such a large, wholescale landlord licensing scheme

The scheme is hoped to improve the standard of private rented properties in the area and to improve the growing anti-social behaviour problem but landlord groups have argued that the Council already have sufficient powers to deal with the any problems. Landlord groups have also commented that the shocking propaganda being used by the Council is grossly unfair. Clearly there is a major housing issue in the area as the Council were recently accused of attempts of social cleansing when they looked to do a deal with Stoke on Trent to ship out their benefits claimants. Landlords who are found to be unlicensed could be hit with fines of up to £20,000 while breaking the terms of the licence could mean fines of up to £5,000.

View the full release and details of the selective and additional licensing boundaries here

What’s your view on the Newham Landlord Licencing Scheme?

At property118.com we are very keen to hear the views of all landlords nationally regarding the Newham Landlord Licencing scheme. How would the creation of such a scheme in your area affect your attitude to investment in property?

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About Mark Alexander
Mark and his family have been investing in property since 1989, initially in the Norwich area but more recently across the length and breadth of England. Mark created Property118.com as a social network for landlords with a vision of becoming the UK's best respected online property community. Mark is also a freelance internet marketing consultant to law firms Email - mark@property118.com

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  • NORMAN WEYMOUTH says:

    GIVE ME MY PIPE BACK OR ELSE BUGGER THE £30 I WILL PUT IT UP TO £500. OH I HAVE NO IDEA WHAT WE WILL WASTE THIS MONEY ON

  • Mandy Jay says:

    Yes, I said £30 – but there again I’ve had trouble counting since I lost the thumb on my left hand!

  • Paul Barber says:

    looks like this council is just trying to justify raising additional revenue to fill their funding gap.

    I also read an article last week that a council were going to charge council tax on each room for a HMO property instead of one charge on the whole property. They are all trying different methods of generation income. Landlords are helping them fill the shortfall in their own stock and yet now they are biting the hand that’s assisting them reducing their costs by not having to house people in expensive bread and breakfast accommodation. Just does not sound fair to me.

    http://www.discountmortgagesuk.com

  • Jamie Moodie says:

    This would bankrupt me, I have 35 properties and have to pay £17500 a year, for what. What did i and thousands of honest law abiding landlords do to these socialist morons. This is a smoke screen for their complete inability to address their housing issues. Blame the private landlord and fine him, and if he doesn’t play ball destroy him completely. I would encourage and lead mass action against these sinister politically driven manipulators of our society. No landlord should pay a penny to this or any other scheme. Tell them to get on with doing what they are paid far too well to do, their job! No Its our fault, the landlord, hated and vilified by the govt, every local authority and the press, how easy.
    This is lipstick on a pig!
    J Moodie

  • Worried Wifie says:

    Outrageous fees. Will have to be passed on to tenants or will have to sell properties affected. Totally counterproductive

  • Roger Edwards says:

    If all landlords got together against this council and refused to pay I suspect they would back down.
    If not and the council took court proceedings a class action which would cost landlords very little each . I rather suspect a judge would be swayed by the people verses the council leaving it with a bloody nose which they deserve.

  • Nik says:

    We have had selective licensing in Manchester for almost 5
    years, it end on 4.8.2012. The good landlords like me registered, the bad ones
    did not and continued to let unsafe houses. There are several exemptions from
    having to license, like the landlord shares a kitchen or bathroom with the landlord
    or the tenancy is over 21 years.

    Watch out for the small print of the conditions. In
    Manchester I was the only one to object to the rule that a landlord is
    responsible for not only the tenants but the tenants visitors behaviour, even thought
    that is country to the “Northern Ireland Judgement” a judicial reviews
    undertake by the Landlords Association of Northern Ireland with the Help of
    Other Landlords Associations like the NWLA North West Landlord Association

  • David says:

    Caption
    “Let me toss a figure in the air – I can always change it later”
    or
    “You can trust me – I have the integrity of a Politician”

  • andrew says:

    who would trust a Scot called Wales?

  • andrew says:

    the prince of wales stamps his authority on his newham fiefdom.

  • andrew says:

    the prince of wales gives 4 fingers to his newham surfs.

  • Llord says:

    This is an absolute outrage and I am fuming.
    Give Newham council £500 for every property you own (I would have to give them thousands) for absolutely no reason AND get nothing back for it in return!! Just the right to be as you are, a landlord. Is this council out of their mind.
    It is so obvious that this is purely just an attempt by the council to raise funds to address their cash strapped position.
    For the love of God something has got to be done about this. This interfering, nannying, overbearing, rip off type of government has got to be stopped. Next, people are going to have to get the councils permission just to exist.

  • Good idea Roger. I’ve invited Darren Bowen from Leathes Prior Solicitors to take a look at this thread. I doubt that London Solicitors would want to take on Newham Council without a huge fee to compensate their reputational risk. Leathes Prior have a pedigree in taking on and winning against Councils, Darren is a Landlord and Tenant specialist and he is Norfolk based, hence Norfolk prices and no fear of Newham Council. It will be interesting to see what Darren has to say.

  • Paul says:

    We will start with four hundred and then increase it yearly

  • Martin Power says:

    first gas certs(fair enough) then electric certs/appliances,,then deposit schemes,then energy certs every ten years,now a copy to each new tenant,then if a tenent wants something on the report improved it has to be done.Now a licence/tax.Saw the writing on the wall a few years ago and should of got out.Had an email today from local landlords association about how local council encouraged landlord to take on mentally unstable woman.After a couple of weeks they stopped all the support she was having,several assaults later the owner contacted the council to evict the tenant and was basically told that would be against the law.
    I myself let a flat to two young lads the council wanted housed.Long story short,they refused to pay me £1200 they owed,they accused my letting agent of forging their signatures,the police were called and new who was in the wrong and the council finally paid up.Do not be under any illusion of trust in the authorities of any type.

  • Mary Latham says:

    Newham? Newham? Where did I read something about Newham recently? Oh Yes it was here http://www.guardian.co.uk/uk/2012/apr/24/london-exporting-council-tenants Reporting on Newham sending coach loads of their homeless people to the West Midlands because they had no homes for them!!!!!!!!!!!!!!!!!!!!!!!!
    Of course the logical thing to do is make landlords sell up because it is no longer financially viable to let in an area where they have additional overheads of Licensing. Makes perfect sense.
    I really pity our colleagues in Newham and I pity landlords in the Universal Credit pilot areas of the north and those in Scotland who are being banned from letting properties http://www.lettingagenttoday.co.uk/news_features/Landlord-banned-from-renting-properties
    While I really do pity landlords in these areas I have even more pity for those who are homeless because the authorities just don’t get it. Landlords are running a business – no profit – no point!
    Just how long it will take for the message to sink in depends on how long people will allow themselves to be deprived on homes!
    Mr A – you knew that I would not resist posting on this thread didn’t you hahahaha

  • Mary Latham says:

    By the way the Licensing fee in Birmingham began at £500 five years ago and has now increase to £1,150! £850 for a simple renewal!

  • samadd says:

    surely this fine waxwork is worth more than 4 pounds!

  • Paul Barrett says:

    So if LL exit the market and properties are converted to normal dwellings; if they are allowed to be taking into account Article 4 etc like flats ; where will all the tenants who can only rent single rooms go!?
    UC claimants would have to be accommodated somewhere!
    Where will this be and where will they stay.
    Especially as UC is reduced for under 35′s.
    TA will be the only solution.
    B & B is far more expensive than other normal accommodation.
    Plus if there are no affordable or insufficient property types available claimants can be shipped to where the cheap accommodation is.
    This will cause claimants to lose their ‘local connection’ and then these tenants will have limited opportunity to return to the expensive council area they were bussed out from.
    LL will just accept a lower income and invest in ‘normal’ properties.
    This will impact on tenants and the availability of suitable property.
    The days of sweating the asset I think are now unviable based on the disgraceful way these councils are behaving.
    I thought the deficit was supposed to be reduced.
    B & B costs a fortune, far more than HMO accommodation.
    If I had the money I would be buying up B & B in cheap coastal places like Margate and Hastings.
    We will be going back to the days of housing benefit claimants living in ‘sink’ coastal towns.
    I pity the council tax payers of these coastal towns and shopkeepers as crime goes up.
    The dregs of society wil be farmed out to these cheap places.
    What a ridiculous situation we as taxpayers, LL and tenants face at the hands of these incompetent councils and silly govt edicts on planning allowances; Article 4 and all that.
    Am I glad I am not involved in multi-occupancy property.
    Though B & B’s would be an attracive proposition if I had the money!!!!

  • Paul Barrett says:

    There is more than sufficient accommodation in Newham that is affordable for LHA claimants.
    However LL refuse to rent to LHA claimants.
    If the govt and councils adressed those issues then there would be no need to allegedly ‘socially cleanse’ these claimant to cheaper areas.
    The reasons LL don’t wish to rent to LHA claimants are
    !/ Inability to ensure LHA is paid to LL immediately
    2/ The loss of LHA if a tenant failed to pass on 2 months of rent before it can be paid directly.
    3/ The possibility of clawback of years worth of LHA if it has been paid directly after a tenant failed to pay
    4/ The behaviour ot LHA claimants which tends to be of a lower standard that normal decent society expects.
    These types tend to be the disruptive families who accrued ASBO’s etc.
    They tend to be the criminal types.
    5/ They tend to engage in criminal type activity
    6/ They tend to cause more damage and thefts at a rental property.
    7/ They generally cannot qualify for RGI and it could take nearly a year to evict these tenants with the consequent massive detrimental problems to a LL financial position.
    The 1st 3 are the principal reasons whymost LL don’t wish to rent to LHA claimants.
    The others could be considered as sweeping genaralisations.
    Irrespective of whether that is the case LL consider these aspects whether it is fair or not.
    It would help a great deal if police would prosecute tenants who caused criminal damage and theft at a rental property.
    Their continuing refusal to regard these as criminal offences which is what they are and prosecute again puts off LL taking on benefit claimants.
    Govt could have major impacts on housing costs if they adressed these issues.
    Of course they won’t adress ANY of the above issues and consequently the supply of multi-occupancy accommodation will reduce with a consequent increase in the housing benefit.
    So much for joined-up thinking!!

  • IPIN Global says:

    As much as I think there should be some sort of regulation/licencing – this is over the top by a long way. The US has an efficient system in the form of Section 8 without it costing a fortune to landlords or tenants – why can the UK not do something similar?

  • Teena Vallerine says:

    You know my vernacular when it comes to Landlord license schemes, Mark. I can’t think of a comment that you would be able to publish! :-)

  • Logan5 says:

    Think of it as the first step in having your BTL profits taxed into oblivion

  • Chazsmash says:

    Yet another Government scam to replace monies THEY have swindled out of the system and to line their own pockets. Why does the working man always have to pay for Government mistakes, greed and corruption. The best way forward is to start at the begining.Clean up MP`s scandals,salaries,expenses & pensions. Pay MP`s the average wage. Euro MP`s can also have the average wage and PROVE all their expenses, instead of having liberties.
    How long will it be before the UK see`s the sights that were seen in the Middle East during 2011 !!!!!

  • Chazsmash says:

    Authority is a form of control,nothing else. It has no inherent wisdom. Do not be fooled by the Government. You are its slave. You have to support their deceitful ways.
    Silence is the peoples enemy!!

  • Chazsmash says:

    Yes Roger. The people forget they have the power. Unfortunatley people either; 1] cant be bothered 2] would rather moan to their friends about a situation rather than stand up for themselves and take action 3] will not unite…..this is where the real power is.

  • Chazsmash says:

    People. May you be reminded by the PM himself, that you DO NOT NEED TO GO TO WORK the Government will take Tax money to pay thier salaries and take care of the following;

    The official email of the
    British Prime Minister

    David Cameron hails historic moment of
    Welfare Reform
    Today marks an
    historic step in the biggest welfare revolution in over 60 years. My government
    has taken bold action to make work pay, while protecting the
    vulnerable.
    Key elements of this
    include:

    The “Benefits Cap” which
    ensures no one can get more that £26,000 in benefits (that’s the equivalent of a
    taxed income of £35,000).
    The “Universal Credit” which
    will ensure that work always pays more than being on benefit.
    These reforms will
    change lives for the better, giving people the help they need, while backing
    individual responsibility so that they can escape poverty, not be trapped in
    it.
    Past governments
    have talked about reform, while watching the benefits bill sky rocket and
    generations languish on the dole and dependency. This government is delivering
    it. Our new law will mark the end of the culture that said a life on benefits
    was an acceptable alternative to work.
    While we’ve been
    putting in place a sensible, modern welfare system that protects the vulnerable,
    our opponents have shown they are on the side of Britain’s something for nothing
    culture.
    We’ve stood up
    against the abuse that left taxpayers footing the bills for people on £30,000 or
    even £50,000 a year in benefits. It’s a fair principle: a family out of work on
    benefits shouldn’t be paid more than the average family in work.
    This is a core part
    of the government’s task of turning around the legacy of debt, overspending and
    waste we inherited. We want money to go to people who need it, not subsidising
    the consequences of our broken society. By reforming welfare we will get people
    into fulfilling jobs, not abandon them to poverty and dependency, save billions
    of pounds of taxpayers’ money and make sure those who really need help get
    it.
    That’s compassionate
    modern government in action.
    It’s also a huge
    tribute to the Secretary of State for Welfare, Iain Duncan Smith, who has worked
    tirelessly and with real moral purpose in tackling the blight of welfare
    dependency.
    Best
    wishes,
    David Cameron
    MP
    Prime Minister

    Some Key Welfare Stats:
    Universal Credit

    Around 2.8 million low to
    middle income households will be better-off on Universal Credit (UC).
    The average overall gain
    will be £29.00 per week under UC.
    UC will lift around 900,000
    individuals out of poverty, including more than 350,000 children and around
    550,000 working-age adults.
    Government will invest an
    additional £300 million into childcare support under Universal Credit, on top of
    the £2bn already spent under the current system.
    Removing the hours rule will
    mean that around 80,000 more families with children will benefit from childcare
    support for the first time.
    By October 2017;
    approximately 12 to 13 million tax credit and benefit claims will be transformed
    into eight million Universal Credit payments.

    Benefit cap

    The benefit cap of £26,000
    will mean that no family on benefits will earn more than the average salary of a
    working family (£35,000p.a. before tax).
    67,000 households will be
    affected by the cap.
    Benefit cap will provide
    savings of £290m in 2013/14 and £330m in 2014/15 (cash terms) or £275m in
    2013/14 and £305m in 2014/15 (at 2011/12 prices).

    Housing Benefit

    We will set Housing Benefit
    at a maximum of £400 a week so that we no longer have the scandal of families on
    benefits living in houses that hard working families could never afford.
    Housing Benefit costs over
    £21bn in 2010/11 [or nearly £23bn this year] and, without reform, would increase
    to £26bn by 2014/15 (cash terms). The Housing Benefit reforms that we announced
    in the Emergency Budget and Spending Review will result in annual savings of
    over £2bn by 2014/15.
    Social Sector Size Criteria
    will stop the practice of the state paying for rooms that are not being
    used.
    This will help tackle the
    social housing shortage that blights many lives in our towns and cities.
    5 million people in England
    alone are waiting for social housing.
    In London 70,000 households
    are getting Housing Benefit for extra bedrooms they do not need – costing the
    tax payer £80million a year.

  • Paul Barrett says:

    Surely the benefit cap should be based on someone on the minimum wage and with some tax credits.
    That is more the position that people are in.
    Very few earn this so called average of £36000 gross.
    So you would be looking at something like £16000 max benefits.
    Loads of cheap accommodation up North which is where London claimants should have to go if they cannot afford London prices.
    Just because you live in London you have no God given right to stay there supported by the benefit system.
    To make it worth working the average wage would have to be about £45000.
    No claimant is going to find a job that pays that.
    I think the govt are going to be in for an almighty shock when making work pay by being better off by say £100 per week will not motivate people into work.
    Would you bother working for an effective £20 per day and that is before tax, travelling, food at work etc.
    Govt is in a dream world

  • Neil Onions says:

    It’s only the reputable landlords like me and hundreds of others that will register.
    The unsavoury types will continue to provide a bad service to thier tenants and Newham will be non the wiser.
    Of course Newham will then put up the charges, creep HMO requirements into all rentals and generally make a meal of it, to our financial loss.

  • S Titmus says:

    Caption: Ooops! Did I show 4 dingers. I meant to show two fingers!!

  • S Titmus says:

    OOps! I meant 4 fingers, not 4 dingers.

  • MFLD says:

    This is just another stealth tax. I have just come back from a holiday and to my surprise Bristol City Council have taken the same stance only the first licence is £550 and subsequent licences £950 it will not stop there. The plot is similar saying that they want to stop iresponsible landlords letting to udesirable tenants.
    Funny most of these clients are on LHA so surely they already know where the problems lie.
    This situation is similar to when the NHS was formed, council told private landlords that they had to improve their housing stock, which they could not afford to do. These properties were in locations where most people rented so there would only be interest from other investors as the cost of improving the stock was so great other investors did not buy so the council’s bought the properties at a knock down price and created the original council housing stock. Is this a ploy to attack the private rented sector?

  • ANON says:

    daylight robbery – Landlords are already paying tax on renting out – bastards!

  • anon says:

    This is a *stealth tax* plain and simple. Just another way for the council to squeeze another pound out of the poor. Landlords would simply pass on the cost to the tenants.

  • MO Faz says:

    Newham council is the richest council in the country and the greediest, they always look for ways of ripping public apart. Unsocial behaver as they say, go to council estates first thing walk into is sticky urine area where the council should be treat like, poverty high crime drug dealing you name it in council estates. They need to get their act together before picking on hard earning landlords. I bet those properties which the council owns will excepted from licencing scheme. This another way to make serious free money without them investing any money at all Robin Smith should voted out with NO Confidence. Scrap this scheme stop being greedy, learn to sort your own mass out before picking on the private landlords. I have friends and family members living in Newham councils properties, go and see what state there in. Selfish, greedy, worse borough to live in.

  • This is a tax on the poor people who cannot afford to buy a flat . Lanlord will have to put their rents up to cover their costs. So Newham Council is taking money from people on low pay.
    Newham Council dont look after their tenants so well just look at the state of any of the tower blocks and council properties

  • Overseas landlord says:

    I am a landlord of a property in Newham, living overseas. I have just become aware of this (despite paying a registered agent to manage my property for me.) I cannot register as a landlord as I do not have a UK address, but the agent suggested I name someone else living in the UK as the licence holder, despite them having no interest in the property.I have owned the property for many years. We already pay an agent to manage the property, and if the property needs any maintenance or new furnishings we act on the tenant’s and agent’s requests and recommendations.Our existing tenant has lived at the property for two years now, so he is obviously happy.This new registry of landlords is a blatant tax grab, evidenced by the fact that as overseas landlords we can’t register ourselves but any person in the UK could register as our licence holder. I hope this will not become standard in boroughs across the UK.

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