Rented homes licensing schemes Central Housing Group

Court rules new controls on rented homes through licensing schemes are illegal

The Court of Appeal has today ruled that councils cannot use selective licensing conditions to impose new standards on private rented homes.

The case saw Paul Brown, a landlord in Accrington, challenging Hyndburn Council which sought to use its selective licensing scheme in certain areas of the Borough to force the installation of carbon monoxide detectors and also to carry out electrical safety checks and implement their findings.  The case was supported by the Residential Landlords Association.

Whilst Mr Brown had already carried out both of these requirements, he argued that imposing such standards through licensing schemes went beyond the powers available to local authorities. The Court of Appeal has today agreed.

Instead, the Court, Mr Brown and the RLA argued that rather than relying on licensing schemes which only cover certain properties, electrical and gas safety issues are best addressed by councils using the extensive powers they already have under the Housing, Health and Safety Rating System (HHSRS). This is the risk-based evaluation tool to help local authorities identify and protect against potential risks and hazards to health and safety from any deficiencies identified in dwellings. Crucially, this applies to all private rented homes, whether they require a licence or not.

The RLA is calling for the guidance associated with the HHSRS, which was last published in 2006, to be updated urgently to reflect considerable changes in the sector since then. This would better support councils to use and enforce their powers under this system.

The RLA Policy Adviser, Richard Jones, said:

“This case was not about trying to stop Councils from imposing requirements.  It was about how they go about this ensuring that they use the proper processes which already exist.

“Today’s judgement is a reminder that councils already have extensive powers to deal with properties found to be unsafe and they must act in a legal manner.”

Written by Victoria Barker

Blog Post from Residential Landlords Association

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