Selective licensing schemes pose ‘double jeopardy’ risks for landlords, warns legal expert

Selective licensing schemes pose ‘double jeopardy’ risks for landlords, warns legal expert

9:35 AM, 6th February 2024, About 3 months ago 19

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A legal firm that specialises in helping landlords has issued a warning about the dangers of selective licensing schemes that many local authorities in the UK are implementing.

Selective licensing schemes aim to improve the quality and management of private rented properties in areas with low demand or high antisocial behaviour.

However, Landlord Licensing & Defence claims that these schemes are ineffective, unjustified and costly for landlords, who could face criminal charges for violating licence conditions that are often unreasonable and beyond their control.

Licence conditions could expose landlords to double jeopardy enforcement

The firm’s director, Des Taylor, said that licence conditions could expose landlords to double jeopardy enforcement and entrapment, as they could not control some of their responsibilities, such as a tenant’s behaviour outside the property.

He said: “This may seem unbelievable and there are cases currently being defended where tenants have confessed to damaging the property and not permitting access, yet the landlord and agent are being enforced against under licence conditions.

“Many landlords and agents do not realise how important it is to comply with them.”

He urged landlords who are applying for licences for the first time, or who already have licences, to check them and read the conditions carefully and ensure that they are compliant with them.

‘One of the most important documents a landlord will ever receive’

Mr Taylor said: “That Notice of Intent to Grant a Licence is one of the most important documents a landlord will ever receive in the process yet is often taken as a fait accompli.

“You legally have the opportunity to make representations in a minimum of 14 days and it is vital if you disagree with any of the conditions that you must make representations.”

He added: “Licence conditions are one of those things that many people think they have to accept as presented and not realising that once you have accepted all the conditions on that licence, that not complying with them is a criminal offence.

“If you have a managing agent and they do not comply you are both culpable, because you agreed to them, by not contesting them through representation.

“The local housing authority can now enforce against you as a criminal offence.”

Seeing more enforcement against licence conditions

Mr Taylor said that Landlord Licensing & Defence was seeing more enforcement against licence conditions as landlords had unwittingly walked into the situation not realising how important they were.

He said that despite the Renters (Reform) Bill introducing a landlord portal and the suggestion that there would no longer be a need for selective licensing, this was ignored by Parliament and by the tenant lobbying organisations along with the environmental health officers who carry out housing enforcement under the Housing Act 2004.

Mr Taylor said: “It looks like licensing is here to stay and more and more licensing is coming about with new selective licensing schemes coming into city areas outside London, including the recently and most publicised Birmingham City Council and Nottingham City Council schemes.”


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Comments

Martin Roberts

9:39 AM, 6th February 2024, About 3 months ago

And Bristol.

AccidentalLandlord2024

9:54 AM, 6th February 2024, About 3 months ago

Is that really the case? Not having a license is a criminal offense but breaches of the conditions should be remedied.

If the license is lost, then another manager needs to be appointed / tenancy terminated.

Anyway, the regime is OTT, plus Rent Repayment Order.

Renting out a property has been a legitimate activity since the Roman time but now it could attract punishments far more severe than many crimes.

When looking at forums/FB, I was surprised that so many people still want get into the business..

Paul Essex

10:00 AM, 6th February 2024, About 3 months ago

Post section 21 there is literally nothing the landlord can do about ASB .

When the RRB is released we need to make a stand to prevent landlords being targeted in this way. Note these forms are electronic we cannot actually cross out an unacceptable cause.

Reluctant Landlord

10:15 AM, 6th February 2024, About 3 months ago

Reply to the comment left by AccidentalLandlord2024 at 06/02/2024 - 09:54
I agree. Irrespective of what the licence states, a LL cannot be held culpable for the action/lack of action of or by a tenant if the landlord has made it explicit to the tenant that as part of the licence the landlord makes clear to tenants the expectations are XYZ.

The relationship between LL and tenant is a civil contractual one - not one of culpability.

In this example the behaviour of a tenant outside the property has nothing to do with the landlord. Are we to be deemed responsible if the tenant carried out what could easily be regarded as an anti social action by letting their dog crap on the street, steals from a local shop too, have music blasting from their car?

The article highlight the importance of the LL making sure they RESPOND to the granting of a licence within the 14 days. If necessary response by asking the council exactly for examples of how you are expected to be compliant to each of the points in the licence. That way you have it on record what that have stated you should do, and ergo if you can show evidence as necessary to show you did this exactly, then you will have deemed to have complied.

AccidentalLandlord2024

10:27 AM, 6th February 2024, About 3 months ago

Reply to the comment left by Reluctant Landlord at 06/02/2024 - 10:15" how you are expected to be compliant to each of the points in the licence"
At the moment, I am afraid it is "a chat plus a written email", then S21. After Rental Reform fully becomes effective, no idea.

JB

11:26 AM, 6th February 2024, About 3 months ago

Kick a Landlord and you kick the tenant. Expect fewer landlords, higher rents and more councils going bankrupt as they have higher and higher temporary accommodation bills. This affects landlords, tenants AND homeowners. Homeowners mistakenly think it has nothing to do with them but they may become interested when their council tax goes sky high and council facilities are sold off. It's a situation that affects everyone

homemaker

12:58 PM, 6th February 2024, About 3 months ago

It would be useful to have some examples of the sort of condition being referred to. In my limited experience SL conditions haven’t been onerous or unreasonable.

Michael Booth

14:04 PM, 6th February 2024, About 3 months ago

Not hard to solve if and when my council introduce selective licence in my are ONLY AMATTER OF TIME, then liebor get elected , l am out of prs after 25 years ,simply not worth the headache, .

Reluctant Landlord

14:41 PM, 6th February 2024, About 3 months ago

Reply to the comment left by AccidentalLandlord2024 at 06/02/2024 - 10:27sorry I meant from the LL perspective in terms of complying to the licence obligations.....
If you ask the council for clarity on HOW you are expected to adhere to each licence condition they have imposed on you as the LL, then that would mean they have to explain fully the condition in the first place and how they expect you to be able to ensure this.
If they can't explain how it is possible that you can account for the actions of a tenant - then quite simply that answers that!

You cannot be deemed as 'not complying' or be in breach of the conditions of the licence if you have no personal responsibility for the actions of another to whom this ultmately applies.

Like saying you hold the council responsible for a local taxpayer who decides to be anti social on a public street!

Reluctant Landlord

14:46 PM, 6th February 2024, About 3 months ago

Reply to the comment left by JB at 06/02/2024 - 11:26
Birmingham in a nutshell.

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