Private Rented Sector Licencing DebateMake Text Bigger
Richard Cubitt, a reader of Property118 has submitted the following summary of Private Rented Sector Licencing. In an email to the Editor or Property118 Richard said “All of this information is all in the public domain but I think that the wider implications are worth bringing to general attention. Thin edge of the wedge!! The application form is something else. 11 pages of detailed information.”
The Housing Act 2004 appears to have provided for three types of Licences within the private rented sector:
• Mandatory HMO licensing applies to all HMOs of three or more storeys, occupied by five or more persons living in two or more households. It is intended to apply to those HMOs considered to present the highest risk to the health, safety and welfare of the occupiers.
• Additional licensing schemes are set up to deal with problems of either anti-social behaviour (ASB) or low housing demand found within a local authority .It applies to all private rented houses or flats rented to three or more occupants within a designated area agreed by local authority consent
• Selective licensing schemes are set up to deal with problems of either anti-social behaviour (ASB) or low housing demand found within a local authority. It applies to all private rented properties within a designated area agreed by the government.
Newham is to become the first borough in the country to license all private landlords. The Mayor and Newham councillors approved the ‘pioneering scheme’ – covering an estimated 35,000 private tenancies (one in three of all the borough’s households)
Newham Council are introducing selective licensing for all private rented properties within the borough.
With effect from 1st January 2013 you will be required to have a license for each rental property you own.
Newham is the first borough in the country to bring in such a scheme
If you apply before 1st January 2013 the cost will be £150.00 per property.
If you do not make the application by 1st January the charge increases to £500.00 per property. And if you do not apply you may face a fine of up to £20,000.00 per property.
Were we aware that the provision of the 2004 Act provided such a blanket licencing system?
A new way for local authorities to raise funding?
How long will it be before all local authorities in the country follow?
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