8:35 AM, 24th August 2022, About a month ago 7
Haringey Council are the latest to introduce Selective Licensing, but this latest iteration of far too many Council’s preferred money grabbing scheme to swell their coffers includes additional EPC rating conditions that are highly likely to further exacerbate the acute shortage of quality rental properties in their area.
Landlords who let their properties in the east of Haringey to a single family or two unrelated sharers will be required to obtain a licence from the council to legally let the home at an eye watering cost of £350, but only if they sign up early. Those late to the party will pay £600, but that’s not where the additional expense ends. To qualify for a license each property must have a far better EPC rating than is legally required in other areas. These additional costs all need to be paid for somehow and with landlords already squeezed to bursting point due to unfair tax legislation and rising interest rates they are also feeling the effects of high inflation and energy costs like everyone else. Is it any wonder that so many of them are selling up?
The knock on effects of a shrinking rental market is increased demand from renters, so those landlords who remain are naturally using this as an opportunity to achieve higher rents when their properties are re-marketed at a higher spec. Bidding wars from dozens of tenants wanting to rent the same property are becoming common place.
The new licensing scheme has been approved by the Secretary of State.
Ben Beadle, CEO of the NRLA said …
“Legally, all private rental homes need to have an EPC rating of at least E, unless they are registered as an exempt property.
“The NRLA wants to see all rental properties as energy efficient as possible. Not only is this good for tenants, it also makes properties more attractive to perspective tenants.
“ We note the support Haringey Council wants to provide to achieve this, but financially, the costs of achieving higher EPC ratings comes with a great expense, even more so, for landlords with larger portfolio’s.
“The Government needs to develop a bespoke financial package to support landlords to make the investments needed in energy efficiency measures. This needs to recognise that many rental properties are among the hardest to improve of any of the country’s housing stock.”
Property118 founder Mark Alexander said …
“Council’s need to consider how best to serve their communities. Now is not the time to add costly additional legislation in the form of Selective Licensing demanding landlords to make expensive improvements to their properties. Where they do, the outcome will be even more landlords exiting the sector. This will lead to even higher rents and immense additional pressure on those Councils to house people dealing with homelessness as a direct response to their own badly conceived policies. Is it too late for Haringey Council to see sense and scrap this crafty stealth tax to pick the pockets of their own constituents? Time will tell!”
Back in 2014, Alex Caravello who is now a Property118 Tax Consultant and shareholder, spearheaded a successful campaign to convince Milton Keynes Council to scrap their plans to extend licensing of shared housing to smaller properties that were not within the scope of mandatory licensing established by the Housing Act 2004. More about that case can be read via the link below.
Will a similar action group be formed in Haringey? Again, time will tell, but if it is they can be assured of the full support of Property118 to publicise their progress as well as our assistance to spread the word for them.
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