Some landlords are unaware they could face fines and RRO issues in selective licensing areas

A legal expert is warning that some landlords are still not aware that they are unwittingly breaking the law in selective licensing areas because they don’t know they need to have a license to operate.

And ignorance is not a defence should the council find out, says Jane Anderson, of law firm Irwin Mitchell.

She warns that while councils must consult widely before introducing a selective licensing scheme, they are ‘not obliged to write to each and every landlord in the area’.

That means there will be lots of landlords, especially newbies, who will not be aware that their rented property needs a license.

Landlords are expected to have systems in place

Ms Anderson said: “Landlords are expected to have systems in place to ensure they keep up to date with their legal obligations.

“Selective licences are not transferrable and therefore new landlords should establish whether their properties fall within an area designated for selective licensing before they let out their properties to tenants.

“Similarly, if landlords take on properties with tenants in situ, they should ensure they have thoroughly checked the legal position and their obligations.”

She adds: “Landlords may find themselves committing an offence if they fail to do so.”

Landlord without a license

The legal expert explains that a landlord without a license is committing a criminal offence – and the council may begin enforcement action.

She explains: “Action against a landlord may result in a criminal conviction and a fine or a civil penalty of up to £30,000.

“Landlords could face a Rent Repayment Order (RRO) being made against them.

“A RRO could be sought by the local authority or a by a tenant, to repay rents collected during the period that the property was unlicensed, for up to 12 months”

Ms Anderson also warns that unlicensed landlords may not be able to serve a valid Section 21 notice to end a tenancy.

Also, getting a retrospective application will not resolve the issue and the landlord may still face enforcement action.