Should I buy in a selective licensing area

Should I buy in a selective licensing area

11:17 AM, 6th May 2016, About 8 years ago 9

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Hello friends, I would be grateful for your opinion about something urgently. I have done my research, but it would be really helpful if some landlords with experience can give me any advice.Middlesbrough

I am planning to buy a BTL property just a standard 2 or three bed terrace in Middlesbrough, a decent home as investment. The problem is that I don’t know where exactly in Middlesbrough I should buy? I spoke with the Middlesbrough council and apparently North Ormsby and South Bank are under selective licensing. Gresham area is not under selective licensing, but property there is slightly more expensive. Obviously Middlesbrough area is quite cheap and the yield is nice.

1) which scenario is better folks to buy cheap property with cheap mortgage with good profit but within a licensing area requiring a licence (like North Ormsby) or to buy slightly more expensive property with bigger mortgage less profit but no licence for now(like Gresham)
2) What is your opinion about the selective licensing in Middlesbrough is it difficult to get a licence, I never been criminally convicted or had any major credit problems or anything like that.
3) Should I be concerned and scared from house in selective licensing area or to buy with confidence if the area is alright in general and the numbers look nice

Thank you so much for your help, please give me advice any advice is appreciated , more opinion and advice is really appreciated. Thank you and all the best


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13:13 PM, 6th May 2016, About 8 years ago

I started my buy to let business over 15 years ago. I purchased cheap housing to refurbish then rent out. As I progressed I bought more expensive properties in more desirable areas. All my initial properties are now in an area where selective licencing is being introduced. In these areas you are likely to attract more problematic tenants who have a tendency to anti social behaviour, run up debts, trash your house and do moonlight flits. I am off loading all these houses as they come empty, but am finding them difficult to sell. In the more desirable areas you will attract a more responsible, reliable tenant who will look after your property. If I had to start the last 15 years again, knowing what I now now, I wouldn't touch any house in a selective licencing area. Hope this helps.

Gary Dully

14:06 PM, 6th May 2016, About 8 years ago

Reply to the comment left by "JO CHAPMAN" at "06/05/2016 - 13:13":

You mean all of Wales?


14:26 PM, 6th May 2016, About 8 years ago

Reply to the comment left by "Gary Dully" at "06/05/2016 - 14:06":

All landlords in Wales have to apply for a licence, one licence per landlord, so it is hardly selective. In England licencing is only introduced in areas of high crime, fly tipping and anti social behaviour. One licence per house is required not one licence per landlord, hence it is selective.

Darren Howe

20:20 PM, 6th May 2016, About 8 years ago

I am a landlord in Middlesbrough and I started with a property in North Ormesby around 6 years ago, plenty of tenants on LHA. As the previous commentator mentioned about problematic tenants. It's a Selective Licence Area for a reason. I now have a fare few properties in Middlesbrough all in nicer area's. But the best bit of business I ever done was selling that first one in North Ormesby (strangely enough to a southerner who had never been to the area) Remember the old saying "Buyer Beware" !!!!!!!!!

9:29 AM, 7th May 2016, About 8 years ago

I own two houses in North Ormesby, in Thornton St and in Beaumont Rd. I am a decent landlord letting through professional agents. It has been a nightmare trying to attract ANY tenants, repairing damage and dealing with tenants who "do a moonlight" as well as trying to deal with the housing benefit department - I wouldn't attempt that without an agent who has a good relationship with them.

They are both deep in negative equity, having valued at £75k in 2007 and allowed me to refinance to buy some elsewhere. So I can't sell.

Perhaps the selective licensing will bring the area up. I hope so. You could do a lot better in somewhere like Brambles Farm, where a house I own in Pallister Avenue has performed far, far better. I'll happily put you in touch with the letting agents I use and recommend. They can advise where is a good place to buy for less hassle.


12:55 PM, 7th May 2016, About 8 years ago

I had one HMO which was licensed and I had a lot of problems with totally unnecessary rude council officers ordering me to do things many of which I felt unreasonable. Now the whole area where virtually all my properties are in requires licensing which only started from 1st October 2016. I have no choice but to comply. I think if the officers are fair all is well and good, if not be prepared for what could be a nightmare.

I personally would definitely not buy in an area with selective licensing.

Landlord X

21:46 PM, 7th May 2016, About 8 years ago

Reply to the comment left by "Jerry Jones" at "07/05/2016 - 09:29":

Thank you very much for the advice could you tell me good areas in Middlesbrough with no licence and houses around maximum 60k-65k price tag. Is it possible every area in the town to be under selective licensing?Thanks and all the best,thank you to everyone

22:33 PM, 7th May 2016, About 8 years ago

I am not local to the town and I rely on the advice of my letting agents. Please ask Mark for my contact details and I'll be happy to introduce you.

Mick Roberts

10:58 AM, 4th July 2018, About 6 years ago

Can you Landlords please sign this & forward to all your contacts.
A small hope, we have to try anything & everything.
I'm sure we not get 10k signatures, but the more Licensing & Govt start to see these things, who knows.
“Petition calling for a review of Nottingham City Councils Selective Licensing."

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