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9:52 AM, 5th September 2023, About 8 months ago 16
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Birmingham city council says that 80% of landlords in its private rented sector (PRS) covered by the new selective and additional licensing schemes have not yet applied for a licence.
The city’s new licensing scheme came into effect on 5 June 2023 to improve the standards and management of PRS properties.
The scheme covers between 50,000 to 60,000 rented homes and the official crackdown on unlicensed landlords started this week – leaving them open to hefty fines.
News that 80% of landlords haven’t yet applied for a licence follows a Property118 story last week that highlighted the influence of social media groups.
We reported that Landlords Licensing & Defence had seen that some landlord groups had urged landlords in Birmingham ‘not to bother’ getting a licence.
And the official figures suggest that many landlords are ignoring the scheme.
But that won’t protect them from being fined up to £30,000 for not being licensed.
Landlord Licensing & Defence’s housing enforcement and casework director, Des Taylor, told us: “Applying for a licence is the only defence and that must be done today.
“Any use of the Council website and inputting property addresses that are then not licensed when they should be will be followed up for fines.”
He added: “There is more money in fines than in the licences, so 5,000 landlords at say £10,000 per fine is simply £50 million income for more enforcement.
“Why wouldn’t you apply? They will certainly enforce!”
A spokesperson for Birmingham City Council said: “Although the scheme has only been live for three months, 20% of landlords covered by the schemes have applied.
“During September, Birmingham City Council will be proactively seeking out unlicensed properties and commencing compliance and enforcement activities.
“It is clear the message is getting out to landlords with a big uptake in applications in the last few days of August 2023.”
The spokesperson added: “Property licensing provides a clearly defined offence in that a property is either licensed or unlicensed.
“We urge all landlords to apply for a licence if they require one.”
Landlords operating an unlicensed property means they are committing an offence under the Housing Act 2004 which brings with it significant financial penalties of up to £30,000 or prosecution.
The council spokesperson added: “There are lots of good landlords that we are sure are anxious to be compliant and we want to work with to assist in applying and ask them to contact us on PL@birmingham.gov.uk if they need help.
“Being unaware of the schemes is not a reasonable excuse and affords no defence.
“In addition, any Section 21 ‘no-fault’ eviction notice served by a landlord who operates a licensable property that is not so licensed or where an application has not been made is invalid.
“Where a landlord has failed to apply there may be poor property management practices in place which enforcement activity will uncover.”
Landlords in Birmingham can check if their property needs a licence on the council’s website.
Martin Hicks
12:07 PM, 5th September 2023, About 8 months ago
With this sort of harsh approach by councils, it's no wonder PRS Landlords are selling up. Result - more homeless families rehomed in B&B's.
TheMaluka
12:32 PM, 5th September 2023, About 8 months ago
Reply to the comment left by Martin Hicks at 05/09/2023 - 12:07
Hence the need to charge the few remaing landlords a high licence fee to pay for all the hotels. It really is very logical 'government think'.
Fiona Wilks
12:32 PM, 5th September 2023, About 8 months ago
This is the council that has just sent out MARS voluntary redundancy notices to all its 10400 employees last month amid news that it is about to go bankrupt.. so you can bet that they will chase the non-registered landlords
Reluctant Landlord
12:43 PM, 5th September 2023, About 8 months ago
Reply to the comment left by Fiona Wilks at 05/09/2023 - 12:32
agree entirely. Any LL without a licence is there for the picking and they got a £83M hole in the budget to find...
Mind you having now had a S114 issued, essentially for total budget mis-management, if they immediately shed those who made the decisions to literally burn taxpayers money, then there's the first saving...
As usual, a council who pays top dollar for supposed professionals who at the end of the day have no idea how to properly run a business....They all need sacking and the whole council budget taken over by the government.
Martin Hicks
12:43 PM, 5th September 2023, About 8 months ago
Reply to the comment left by TheMaluka at 05/09/2023 - 12:32
Good point. I hadn't quite thought it through that far!
SimonP
17:26 PM, 5th September 2023, About 8 months ago
"Landlords in Birmingham can check if their property needs a licence on the council’s website."
And the relevant page on the council's website (https://www.birmingham.gov.uk/propertylicensing) says: "Page not found".
How very useful. No wonder they're going bust.
Dennis Forrest
18:10 PM, 5th September 2023, About 8 months ago
Poor Birmingham Council just need the money. You have to feel sorry for them, don't you?
News item today from Sky-
Birmingham City Council has effectively declared bankruptcy after being hit with a £760m bill to settle equal pay claims.
The council said it had issued a section 114 notice, confirming that all new spending, with the exception of protecting vulnerable people and statutory services, must stop immediately.
In a statement declaring itself in financial distress, the local authority said it will "tighten the spend controls already in place and put them in the hands of the section 151 officer to ensure there is complete grip".
The Labour-run council is the largest local authority in Europe, comprising 101 councillors (65 Labour, 22 Conservative, 12 Liberal Democrat and two Green).
The statement read: "Birmingham City Council has issued a s.114 notice as part of the plans to meet the council's financial liabilities relating to equal pay claims and an in-year financial gap within its budget which currently stands in the region of £87m.
Crouchender
20:38 PM, 5th September 2023, About 8 months ago
Any cash strapped Council with Licensing will be dishing out penalties to even licensed properties (low hanging fruit/ innocent LLs) as penalty income they keep and use for their council coffers.
David
13:01 PM, 6th September 2023, About 8 months ago
Not sure who will be left within the Council to do the chasing. The bin men perhaps when they finish their round.
Crouchender
17:32 PM, 6th September 2023, About 8 months ago
If only 20% have signed up to Licencing their business model on financing the PRS team is up the creek unless they get the other 80% to cough up as they can't run a huge enforcement team without licencing income coming in.
They really have not though this out properly and GOVE probably wanted them to fail that's why he gave them permission for the huge selective scheme.