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9:52 AM, 5th September 2023, About 9 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.
philip allen
17:24 PM, 10th September 2023, About 8 months ago
Reply to the comment left by Martin Hicks at 05/09/2023 - 12:07
Is this the same Birmingham City Council that have just declared bankruptcy? If so, then would it not be illegal for them to continue trading? Issuing new licences or imposing fines would be considered trading, surely.
Jessie Jones
21:40 PM, 10th September 2023, About 8 months ago
Money raised from Selective Licensing has to be ringfenced for use in their licensing work. What's the betting that with a bit of creative restructuring of the council workforce, anyone facing redundancy will be first moved into the licensing dept, and then made redundant from there. Fat redundancy payouts being funded by private tenants through the fees that their landlords have to pay. Many of the staff who work in the Nottingham licensing dept were moved there from other posts that were being made redundant, so they tend to be the long term employees who don't really provide anything of value, and who are due the biggest payouts.
Mr William
5:12 AM, 20th September 2023, About 8 months ago
I put in the application months ago, and they took half of the money. They haven’t bothered to approve it yet, or take the other half. Everyone I know is in the same position.
I resented this to start with, but knowing what’s now happened it is infuriating. How much of this money will go towards what it’s meant to? None I bet. It will be plundered and wasted.
It’s especially infuriating being the landlord of a new build, that was only inspected and signed off 2 years ago. Clearly if it was compliant then it is now.
Has anyone actually had their application approved?
Reluctant Landlord
8:39 AM, 20th September 2023, About 8 months ago
Reply to the comment left by Mr William at 20/09/2023 - 05:12
raise a 'dispute' (or section 75 as it is known) with your credit card company as 'services and goods have not been provided' and there is no clear understanding of when this will happen. Just give them a call today. Explain that the organisation you have paid for a service has gone bankrupt and you have no idea when the goods (licence) or serivce (them providign the licence or carrying out a visit as part of their licence obligation will be done. You have therefore no faith that you will be getting what you have paid for).
The credit card company pay you back Part A of the fee you paid and then investigate the issue. If they find this is the case then the money will stay in your account (and BCC will therefore have to raise and invoice for you to pay the SL at a later date causing them more time, and cost..)
In the meantime the credit card company will have to contact BCC directly to get an understanding of what the situation is so they can make a decision themselves.
Even if they find that the dispute is not upheld and BCC are due the money then they will take the money back out of your account. (at this stage you are no worse or better off than you were originally ) BUT this has forced BCC have to reply to the investigation etc, causing them more time and hassle!
With BCC in total chaos, any investigation will just mean more hasstle for them to reply etc and delay cause the SL scheme to back up even more - showing the whole thing is a complete joke and will ultimately cost more than anticipated.
As you have already applied there is issue with you not being 'compliant', so no worries there, but you get the parting shot of making their life hell with the admin of the scheme and now having to fend off a dispute....
I have just received the form from the bank to fill in with all the details and reasons why I have raised a dispute. All you need to do is print off and attach local news articles to show you have no faith that BCC will deliver what you paid for. I will be filling it in and sending it off at the last minuite to protract the process for as long as possible.
Reluctant Landlord
8:46 AM, 20th September 2023, About 8 months ago
Reply to the comment left by Jessie Jones at 10/09/2023 - 21:40
BUT any time spend on this SL scheme is not as I unerstand it a key/core service. I think the Gvt bods who are coming in are looking to only allow services to run that provide essentials. The way I see it is SL is not a key service irrespective if it is 'self funded' or otherwise.
They are looking to cut costs immediately to fund the budget hole and stop the heamorrage of £3M A WEEK.
SL is not something that can generate money quickly to help fill the hole even if it is self funding so you might find that because of this no new staff can be taken on the payroll as that is direct new employment (which is all on hold). Moving people to SL Dept will also be quesionable. The govt bods would rather see people off the payroll entirely.
Eager to see what comes next in this saga....
Reluctant Landlord
8:39 AM, 22nd September 2023, About 8 months ago
How many others out there have had to apply for a Bham SL? where are you in the process?