Some landlords are unaware they could face fines and RRO issues in selective licensing areas

Some landlords are unaware they could face fines and RRO issues in selective licensing areas

0:02 AM, 1st July 2024, About 3 months ago 2

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A legal expert is warning that some landlords are still not aware that they are unwittingly breaking the law in selective licensing areas because they don’t know they need to have a license to operate.

And ignorance is not a defence should the council find out, says Jane Anderson, of law firm Irwin Mitchell.

She warns that while councils must consult widely before introducing a selective licensing scheme, they are ‘not obliged to write to each and every landlord in the area’.

That means there will be lots of landlords, especially newbies, who will not be aware that their rented property needs a license.

Landlords are expected to have systems in place

Ms Anderson said: “Landlords are expected to have systems in place to ensure they keep up to date with their legal obligations.

“Selective licences are not transferrable and therefore new landlords should establish whether their properties fall within an area designated for selective licensing before they let out their properties to tenants.

“Similarly, if landlords take on properties with tenants in situ, they should ensure they have thoroughly checked the legal position and their obligations.”

She adds: “Landlords may find themselves committing an offence if they fail to do so.”

Landlord without a license

The legal expert explains that a landlord without a license is committing a criminal offence – and the council may begin enforcement action.

She explains: “Action against a landlord may result in a criminal conviction and a fine or a civil penalty of up to £30,000.

“Landlords could face a Rent Repayment Order (RRO) being made against them.

“A RRO could be sought by the local authority or a by a tenant, to repay rents collected during the period that the property was unlicensed, for up to 12 months”

Ms Anderson also warns that unlicensed landlords may not be able to serve a valid Section 21 notice to end a tenancy.

Also, getting a retrospective application will not resolve the issue and the landlord may still face enforcement action.


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northern landlord

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13:58 PM, 1st July 2024, About 3 months ago

The Renters Reform bill when (not if) it goes through will require all landlords to be registered and all landlords to pay for ombudsman schemes and decent homes inspections. So in effect a blanket rather than a selective licensing scheme for all with £30,000 fines lurking for non-compliance. Then potentially slap on a bit of rent control and EPC regulations at some point as well. The PRS is becoming less and less attractive all the time

Judith Wordsworth

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10:31 AM, 6th July 2024, About 3 months ago

Landlords should know if their properties are in Selective Licensing areas.

Should they be fined? Honestly yes, as might get these landlords to buck their knowledge of their legal responsibilities and obligations up.

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