Will the council fine me £30,000 for not having a license?

Will the council fine me £30,000 for not having a license?

9:38 AM, 25th March 2024, About a month ago 16

Text Size

Hello, I have received an email from Brent Council to apply for a landlord license, which I am working on now to meet the 1 April deadline. However, I remembered I haven’t heard from Ealing Council with regard to licencing a flat I am letting there.

Upon checking Ealing Council’s website, I found out that they started implementing the licensing scheme from 1 January 2023. I am letting the property through an agent and neither him nor myself have been contacted about this.

In fact, I have had no contact at all from the Ealing Council since I bought and let the property over ten years ago.

My question is: If I apply now, will they impose their £30,000 fine on me or will they accept the fact that I didn’t know about the licencing scheme?

What should I do?

Thank you,

Basel


Share This Article


Comments

Judith Wordsworth

11:36 AM, 25th March 2024, About a month ago

It's not up to LA's to find PRS landlords but landlords to make the licence applications.

Ignorance is not defence in law.

Ealing Council started promoting the scheme as far back as Dec 2021. The need for landlords to apply for a license in Feb 2022 on their website https://www.ealing.gov.uk/news/article/2154/
and in the local press. https://www.bing.com/search?q=ealing+council+landlord+licensing+scheme+proposal+2022&qs=n&form=QBRE&sp=-1&ghc=1&lq=0&pq=ealing+council+landlord+licensing+scheme+proposal+2022&sc=10-54&sk=&cvid=CE82FDAA76664E5BBDD460F2B4BB78BF&ghsh=0&ghacc=0&ghpl=

https://www.aroundealing.com/homes/green-light-for-ealings-largest-private-rented-property-licensing-scheme/

Buck stops with landlords but your letting agent cannot have been unaware as will have affected all their clients.

David

11:40 AM, 25th March 2024, About a month ago

Apply now. If the Council hasn't discovered the breach then I don't believe that they can prosecute you for it.

LaLo

14:28 PM, 25th March 2024, About a month ago

Councils are very s——-ky and give no warning when licensing is coming in as they’re stuck for cash! I keep an eye on my local council. Check if the dates tie in or not.

Crouchender

15:17 PM, 25th March 2024, About a month ago

If your tenant finds out you don't have a license then they are in for massive rent repayment order of up to 12months (RRO) for as long as you did not have a licence so apply now and hope the council don't tell the tenant although if the tenant is on benefits then the council will apply for RRO for the benefits payments. OR just sell now.

Lisa008

8:32 AM, 30th March 2024, About 4 weeks ago

Your agent seems to have dropped the ball a bit... didn't they know? That said, it is your responsibility to be up to date with every piece of law and legislation that's going. You're a social worker, a housing provider, a documentation checker (immigration officer), you're all that ... and then some.

Does your agency have other clients who operate in the borough? What did they say when you bought it to their attention? I bet Ealing are swamped in paperwork. They're not at the stage to be looking for who hasn't registered... I'm sure they're just looking at their applications at the moment.

I remember applying for licenses, and I'm sure it took the council over a year just to get round to looking at my application! I was getting worried, but I asked my agent, who said everyone was in that position too, so a good agent - worth their weight in gold!

Paddy Murphy

9:44 AM, 30th March 2024, About 4 weeks ago

I had the same issue and wasn't aware my local authority chose to vary HMO licence down to 3 people (rather than the standard 5). I applied 18 months after licencing started. The council didn't notice and issued the licence as if I was a new landlord. The council have no record that the property is rented out because there is no register of rented property. Unless they start knocking on doors then they will have no way to find out that the property is already rented out, and even then they have to prove how many people are living there. I have since added a clause to my lease that the document is private and can only be shared if required by law...not sure it will stand up but worth a shot.

Simon F

12:01 PM, 30th March 2024, About 4 weeks ago

Ealing's selective licencing scheme will be some, not all wards, you need to use the postcode checker on their website:
https://www.ealing.gov.uk/info/201086/housing_and_council_tax/2201/private_rented_property_licensing

Reluctant Landlord

14:04 PM, 31st March 2024, About 4 weeks ago

Reply to the comment left by Paddy Murphy at 30/03/2024 - 09:44
they can check though at any time that the property ownership is different from the names of the people paying the council tax bill... and if there is a discount applied to the CT bill they can then see if the tenants are also on benefits....

Agree it is a long shot because this involves work and time to check (and of course its far easier to sit on their bum and just watch SL fees come in) BUT they could do this...

Paddy Murphy

15:33 PM, 31st March 2024, About 4 weeks ago

Reply to the comment left by Reluctant Landlord at 31/03/2024 - 14:04
Couple of points that make that very difficult.
Land registry ownership is 88% complete.
Land registry doesn't list bedrooms so no way to know that the property could be subject to HMO.
Council tax bill would need to have at least 3 named people.

So it's a pretty incomplete data set that needs to be cross referenced with each other, not forgetting that the Land registry own the data set, not the local council. Even then it is reliant on the tenants putting at least 3 names on their council tax bill.

So even when the council have all the data it is only an indication that it might be a HMO subject property....then the council need to start knocking on doors.

Jessie Jones

9:09 AM, 2nd April 2024, About 4 weeks ago

Firstly, do check whether or not your property is in a postcode where a licence is required. Different types of licence are required in different areas.
The responsibility unfortunately does lie with you. However, if you apply without the council having to chase you, you will limit the size of any fine. The council should have a policy on how they determine the size of any fine, and they might publish data on previous fines. Repeat offences or a lack of willingness to engage with the council are likely to aggravate the size of the fine.
Just by way of example, Nottingham have published their own criteria here, and the size of the fines can also be seen. Last year they seemed to vary between £1,290 and £15,000, so a very big spread there.
https://www.nottinghamcity.gov.uk/information-for-residents/housing/private-rented-accommodation/investigating-housing-offences/

Rent Repayment Orders are indeed an additional cost you are likely to suffer.
Licence fees are tax deductible. Fines, Penalties and Rent Repayment Orders are not.

1 2

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