Selective Licence required or not?

Selective Licence required or not?

0:01 AM, 1st August 2023, About 9 months ago 5

Text Size

Hello, legislation states: (3)A tenancy or licence is an exempt tenancy or licence if: (a)It is granted by a non-profit registered provider of social housing,
(b)It is granted by a profit-making registered provider of social housing in respect of social housing (within the meaning of Part 2 of the Housing and Regeneration Act 2008), or
(c) It is granted by a body which is registered as a social landlord under Part 1 of the Housing Act 1996 (c. 52).

Does that mean I need a selective license, if the tenants (a family) living in my property have a direct licence tenancy agreement with the council?

Thanks,

Reluctant Landlord


Share This Article


Comments

Judith Wordsworth

10:02 AM, 1st August 2023, About 9 months ago

A Selective Licence is not the same as the licence being referred to in the legislation ie a licence to occupy residential property.

The difference between a tenancy and a licence is largely about the term 'exclusive possession' but not necessarily so.

Have a read of this https://www.netlawman.co.uk/ia/lease-or-licence#terminology:-tenancy-or-a-lease

David

12:00 PM, 1st August 2023, About 9 months ago

Robert M

14:57 PM, 1st August 2023, About 9 months ago

You have not stated WHICH legislation you are referring to, however, it appears to be Section 3A of the Housing Act 2004.

Your question mentions that the occupiers have a "direct licence tenancy agreement with the council", but I'm a bit unclear as to what exactly you mean by this. - Are you leasing your property to the Council? Or, are you letting your property to the tenants and the rent is being paid via Housing Benefit (e.g. paid via the council's HB team)?

If you are leasing your property to the council, then my understanding is that you do not need a selective licence.

If you are letting to the tenants, but their rent is being paid via Housing Benefit from the council, then I believe that you would need a selective licence if you are in a selective licensing area.

Reluctant Landlord

15:13 PM, 1st August 2023, About 9 months ago

The tenant has direct licence with the council. The tenant pays the council direly whatever rent they are charged.

I let the property to company that has won a tender with the council to provide them property (via private landlords) for the council to use as temp accommodation (for families in hotels awaiting a move to perm accommodation). I get paid by the company directly a fixed amount regardless if there are tenants or not. The company says they get paid by the council a fixed fee.

I am trying to work out if under Section 3A of the Housing Act 2004 if the council is a provider that is categorised as a, b, or c.

If they are then it seems I am exempt from needing to get a selective licence.

David

16:37 PM, 2nd August 2023, About 9 months ago

I think you are exempt as the Council is granting the tenancy/licence and they qualify as a social housing provider. You should get paid legal advice if in any doubt.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now