London council to expand its selective licensing scheme

London council to expand its selective licensing scheme

9:15 AM, 11th November 2024, About 4 weeks ago 9

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A London council is looking at a significant expansion of its selective licensing scheme which will cost landlords £923.

After being launched in four wards, the scheme will now cover most of the borough, impacting an estimated third of Lambeth’s dwellings in the private rented sector (PRS).

The scheme requires landlords renting to single-family households or a maximum of two unrelated sharers to obtain a license from the council.

The council says licensing will improve property management and tackle issues like anti-social behaviour and deprivation.

‘Quality housing is a right’

Councillor Mahamed Hashi, the cabinet member for safer communities, said: “We believe good quality housing is a right. Private Renting is often the only option for residents who can’t access social housing.

“Whilst most landlords provide good, safe accommodation, there are some who take advantage of tenants, or don’t know what their responsibilities are.

“That is why it’s important that the full range of powers is not only available to the council, but readily used.”

He added: “We are committed to working with good landlords, helping them understand the legislative requirements; but we’re also committed to tackling those landlords that refuse to provide safe and healthy housing for tenants in Lambeth.”

1,000 landlords applied for licenses

At a cabinet meeting, councillors heard that more than a thousand landlords had already applied for licenses in the first month of the scheme’s implementation across four wards.

The council is encouraging more landlords to come forward.

A report presented to the cabinet found the scheme meets the borough’s plan to create a safer Lambeth by 2030.

To achieve this, the council aims to improve the PRS by addressing issues such as criminal landlords and substandard housing conditions, while also providing support to landlords who need assistance.

Around a third of Lambeth’s 144,985 residential dwellings are in the private rented sector – and council data indicates that 9,446 of these properties will have serious safety hazards.

Complaints about anti-social behaviour

Lambeth also says it has received more than 10,000 complaints about anti-social behaviour in the PRS over a three-year period.

A 12-week public consultation on the proposed licensing scheme garnered significant support, with nearly two-thirds of residents and local businesses expressing approval for its implementation.

The scheme is still subject to approval from the Secretary of State for the Ministry of Housing, Communities and Local Government (MHCLG).


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Reluctant Landlord

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11:08 AM, 11th November 2024, About 4 weeks ago

of course it is....free money!

Every council will be doing this soon.

The Property Man

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11:31 AM, 11th November 2024, About 4 weeks ago

That will put rents up £100 per month then

Reluctant Landlord

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15:20 PM, 11th November 2024, About 4 weeks ago

Reply to the comment left by The Property Man at 11/11/2024 - 11:31
a licence is usually for 5 years so £923 is just over £15 a month....

But you could backdate this £15 a months when you increase the rent according to the date the licence was applied.

ie Licence granted on 1 Feb 2025 but you cant increase the rent until May 2025. You could include the Feb, Mar, April and May £15 and add all that in to the next annual rent increase to account for the months it was applicable but you could not charge it at the time. That means from May 2026 it reverts to just the £15 a month going forward.

Ryan Stevens

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15:35 PM, 11th November 2024, About 4 weeks ago

£15 a month going into the council's pocket, not the landlord's. Will the tenant mind having to pay another £15 to the landlord to cover his/her increased costs of dealing with the licence conditions, inflation, etc.?

Reluctant Landlord

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15:39 PM, 11th November 2024, About 4 weeks ago

Reply to the comment left by The Property Man at 11/11/2024 - 11:31
OR

you could state that you intend to sell the property in the future (within the year say) and add the cost of the licence to the rent increase in total, because you wont be in need of the licence after that.

Useful if you intend to give notice to the tenant before the S21 is taken away, so they know you are planning ahead and they need to look elsewhere? A rent increase may prompt them to look to leave...

Reluctant Landlord

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15:41 PM, 11th November 2024, About 4 weeks ago

Reply to the comment left by Ryan Stevens at 11/11/2024 - 15:35
round it up to £20. The paperwork is a pain and it's your time this is taking...

Cider Drinker

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21:58 PM, 11th November 2024, About 4 weeks ago

If it’s to improve property management, and if I manage the property myself, can I just give myself the money?

Reluctant Landlord

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9:22 AM, 12th November 2024, About 4 weeks ago

Reply to the comment left by Cider Drinker at 11/11/2024 - 21:58
which is why the rent will not just be increased by the cost of the SL but also will include MY costs of self managing/paperwork etc and the time that takes...

paul smith

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10:27 AM, 16th November 2024, About 3 weeks ago

Now remember everyone, when you put up the rent, break it down monthly like so:
Rent of property: xx
Council Licence fee: x
Cost of obtaining Council Licence: x
Insurance: x
Agents fee: x
Cost of energy efficiency survey: x

Cost of insulation upgrades: xxx
Show your tenants how many add on costs they are paying as part of their rent.

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