Accidental landlords warned over selective licensing schemes

Accidental landlords warned over selective licensing schemes

0:04 AM, 24th June 2024, About 4 months ago 4

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Amateur landlords are being warned about the dangers of new selective licensing schemes which could lead to hefty fines.

The councils of Brent, Lambeth, Lewisham and Islington have all recently unveiled plans to introduce or expand licensing schemes for private rented properties.

Landlord Licensing & Defence says these schemes unfairly target ‘accidental landlords’ who might, for example, inherit a property or rent one out when moving in with a partner.

These landlords, who often have limited experience in operating a rented property, could face significant financial penalties for minor breaches of the schemes’ complex rules.

‘Filled with draconian conditions’

Phil Turtle, a legal expert at the firm points to the licensing scheme in Brent and said: “The scheme requires landlords to pay £840 to Brent Council, which issues a council licence.

“This licence is filled with draconian conditions that, if not complied with, can result in criminal offences punishable at Level 5 on the criminal scale, leading to unlimited fines and a criminal record.

“Landlords, particularly those who are not legally trained, do not realise the implications of these licence conditions until it is too late.”

He explains that the occupancy of their properties may be reduced in their licence that below is that permitted by legislation – leading to more fines.

Growing numbers of addental landlords being caught

Mr Turtle says that Landlord Licensing & Defence is seeing growing numbers of addental landlords being caught up in the situation.

He says the selective licensing schemes are targeting two groups of landlords: Good landlords who comply with regulations and provide decent accommodation and are paying to confirm they are following the rules.

And the second group includes amateur or accidental landlords who, despite providing decent accommodation, may incur heavy fines because they don’t always understand licensing schemes.

Mr Turtle says: “Interestingly, landlords providing substandard housing, who deliberately avoid licensing their properties, seem to escape the council’s enforcement efforts.”

Non-compliance fines of up to £30,000

Mr Turtle says that non-compliance fines of up to £30,000 raise ‘ethical concerns’ as these landlords often provide good-quality housing.

He added: “We are concerned that the schemes prioritise easy targets – responsible and inexperienced landlords – over those deliberately providing poor housing.

“That then raises massive doubts about the scheme’s effectiveness in addressing the core issue of substandard housing.”

Landlord Licensing & Defence says councils should prioritise a transparent and evidence-based approach to improving housing standards.


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Judith Wordsworth

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10:49 AM, 24th June 2024, About 4 months ago

Whether you have 1, 2 or 100’s there is no place for amateurism in the PRS.

No one is an accidental landlord having made a conscious decision to be one. If someone moves into another property then a choice was made to rent it out or sell the property moved out of, if inheriting a property a similar decision was made as was inheriting an already tenanted out property.

There is no excuse not to know what’s going on in the arrears where PRS landlords have their rental properties. It’s being due diligent.

There’s no excuse for not protecting deposits within the 30 days, nor getting certificates for gas/EiCR/EPC etc etc.

No excuse for not having copy documentation of everything from their letting agent to know what’s going on - the buck stops with the PRS landlord.

Whether having 1, 2 or 100’s of rent properties their are no excuses for not being professional and running a professional business. The PRS is not a game!

If we act professionally we need the support of Governments and Local Authorities not the vilifying or crucifying.

We need realistic deposits to cover our properties for damage that some tenants cause - whether deliberately or through ignorance and lifestyle.
Hire car companies seem to have less difficulties these days.

We need education for people who are or will become renters so that it becomes unsocially acceptable to not pay the rent, for not looking after their “home”, and to go back to old fashioned values ie not living beyond their means and prioritising roof, bills, food. Entertainment, takeaways, holidays coming at the bottom of the list.

Many of have experienced tenants on benefits having more disposable income than us, I know I have. A choice sometimes between “do I redecorate/re carpet the rental or do my home”. The rental always wins, lol.

Reluctant Landlord

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11:06 AM, 24th June 2024, About 4 months ago

Reply to the comment left by Judith Wordsworth at 24/06/2024 - 10:49
I agree with . If there is going to be a continual claim the for the PRS to be more professional where standards and legislation are on the increase, then the same should apply to the tenant sector - they need educating as to what is and what is not acceptable and the law should not pander or side with the tenant.

The tenant - any tenants - voluntarily enters into a contract, and as such they are legally obligated to uphold their part of the agreement just as much as the LL.

Legislation does not give balance, and neither does judge's decisions.

This is ALL because there is not enough housing to go round and its seen as political to evict a tenant. No it is not.

The same issues with criminals - judges being asked to delay getting cases to court and then not giving custodial sentences as there is no room to house them.

Mick Roberts

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13:01 PM, 24th June 2024, About 4 months ago

Reply to the comment left by Reluctant Landlord at 24/06/2024 - 11:06
Thanks for keeping us informed Phil.
Eh, Judith & Reluctant. We all started out with one though din't we. First one I bought was for mate with kid to get him out Council flat.

I think for some of us, regulations rules are overtaking us. Me & tenants had no problems before.
As we know Section 24, now caused financial ruin & homeless for many.
HB we could manage, UC causing repossessions (of Landlords houses) & homeless for many.
And Selective Licensing is now causing problems where there wasn't problems before. My houses have got worse since Selective Licensing.

All these great office dream't up office ideas presume we all charging top whack rents to the most pristine reliable tenants in the world. When in reality, £300pm cheaper rent with not the tidiest or reliable tenant who we are just managing, u bring a draconian rule in & that £300pm relationship & safe home no longer works.

I'm like an Accidental Landlord now. I can't keep up. It's overtook me. Causing many of us to sell.

Michael Booth

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13:14 PM, 24th June 2024, About 4 months ago

Usual suspects lefty wing liebor councils at it again. ,give notice and sell up.

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