Landlord Law Expert Attacks New Licensing Rules
Landlord sector figure Phil Turtle says the new selective licensing rules are nothing more than ‘council money-raising schemes.’
Councils in England are now able to introduce selective licensing schemes without first gaining the Secretary of State’s permission, a new policy that a leading landlord law expert has slammed.
Councils must still, though, adhere to a mandatory 10-week public consultation period before introducing a scheme.
They will also be required to provide regular updates to the Ministry of Housing, Communities and Local Government on the progress of their schemes.
Boost council coffers
The National Residential Landlords Association, though, has been highly critical of the new rules, saying they “make no sense” and may conflict with the planned landlord’s database under the Renters’ Rights Bill.
Propertymark has echoed this sentiment, arguing that the private rented sector ‘needs less selective licensing, not more’.
And landlord licensing expert Turtle believes the new rules won’t improve housing standards – but will boost council coffers.
He says there will be almost zero input from landlords or tenants during the obligatory consultation process: “We now are on the starting blocks for every council to require every rental property to be licensed under what will become 340-odd councils with 300-odd different licensing schemes.
The go-ahead for out-of-control local council money-raising schemes.”
Adding: “Breach of a selective licence condition is a criminal offence with unlimited fines in the courts or councils can issue a civil penalty fine of up to £30,000 and keep the money for the cash-strapped council’s coffers.
As a result, he thinks councils will use their new powers to introduce schemes to boost revenue collection from licence fees and fines and points out that selective licencing schemes in England typically cost around £1,000 (£200/year) whereas a similar scheme in Jersey costs just £30/year.
“This move is nothing less than the government giving away any vestiges of control they had over out-of-control Local Housing Authorities and giving the go-ahead for out-of-control local council money-raising schemes.”
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