Selective Licensing
What is Selective Licensing?
Selective licensing schemes are highly targeted measures to tackle the most severe problems in the private rented sector. Selective licensing is intended to address the impact of poor quality private landlords and antisocial tenants and focuses on improving the management of privately rented properties.
Pendle Borough Council is not currently operating a Selective Licensing Scheme but we will continue to look at areas within the Borough which may benefit from such a designation in the future.
Local Authorities can designate their entire district or an area within a district as a selective licensing area. The proposed area must meet one or more of the following conditions:
- The area is one which is experiencing (or is likely to experience) low housing demand and the local housing authority is satisfied that 'designating' an area will, when combined with other measures, lead to improved social and economic conditions in the area.
- The area is experiencing a 'significant and persistent' problem caused by anti social behaviour and that some or all private landlords in that area are not taking appropriate action to tackle this. Moreover, the designation in combination with other measures would lead to a reduction in or elimination of the problem.
Why introduce Selective Licensing?
Poor housing management and low standards in the sector can lead to the failure of a local housing market. People leave the area, house prices fall, speculative landlords move in, and the local community becomes weaker. Low demand and antisocial behaviour can result in unsettled communities, along with other social and economic problems. These can undermine efforts to regenerate an area.
Definition of low demand
In deciding if an area is suffering from low demand a Local Authority must take into account the following conditions:
- the value of properties in the area, in comparison with similar properties in comparable areas.
- the turnover of occupiers in an area
- the number of properties available and the length of time they are unoccupied.
The benefits of selective licensing
- Landlords who have not responded to any previous measures (such as registrations schemes or voluntary code of practice) will be forced to engage with their LA. Bad landlords will be forced to improve their practices or leave the market.
- Schemes should be easy to administer and explain, as all private landlords in a designated area will be covered by licensing of some kind.
- Local Authorities will gain extensive knowledge about private renting in a particular area. This will enable them to target support, information and enforcement more effectively, and to better understand the root of the problems the area faces.
Benefits to landlords
- Responsible landlords will receive information and support.
- Licensing creates a level playing field, so decent landlords will not be undercut by an unscrupulous minority.
- Poorly performing landlords will receive support and training to improve.
- Improved rental income as areas improve.
- Improvement in the reputation of private landlords.
- Shorter void periods and reduced tenant turnover.
- They will have the option to join an accredited scheme for additional support and advice (which can extend to non-selective licensing areas).
- Accredited landlords can be involved in local choice based letting schemes.
- The LA can provide practical support and training around dealing effectively with antisocial behaviour from tenants.
Benefits to neighbourhoods and communities
- increasing housing demand and reducing antisocial behaviour will improve problem areas, making these safer, more desirable places to live.
- Reducing environmental costs and costs of crime, such as street cleaning and tackling fly tipping.
- Making it easier to involve all landlords in wider strategies including crime reduction initiatives, local spatial strategies and other countrywide plans.
- Protecting vulnerable groups, who are often occupiers of privately rented accommodation which is poorly managed and maintained.
Benefits to tenants
- More professional landlords should bring about improvements to the quality and management of property.
- Tenants could also see economic benefits, for example in reduced heating costs and improved likelihood of regaining any deposit paid.
- Improvements to the neighbourhood would also benefit private tenants' security and sense of community.
- Better management practices should help to increase the length of tenure and reduce incidence of unplanned moves or homelessness.
Licence Applications
What a licence will cover
Mandatory conditions of a licence include:
- having a current annual gas safety certificate
- ensuring that all furniture and electrical equipment is safe, and provision of a safety declaration if requested
- ensuring there are working fire alarms
- supplying tenants with a written tenancy agreement which includes the landlord's procedures for dealing with antisocial behaviour
- obtaining references for new tenants
- taking 'reasonable and practicable' steps to prevent or reduce any antisocial behaviour
- carrying our repairs and meeting other legal obligations within a reasonable time
- the landlord supplying their tenant(s) with their contact details
How much will a Licence Cost?
The costs of licenses are determined locally, and the LA can take account of all the costs of running a scheme when setting the fee. The government has not introduced a cap on charges.
Enforcement of Licensing Conditions
A breach of licensing condition is an offence and can result in a fine of up to £5,000. A failure to licence a licensable property is also an offence, and can result in a fine up to £20,000. If a property is let on an assured short hold tenancy, the landlord loses the right to serve notice requiring possession under section 21 of the Housing Act 1988 until the property is licensed. Rent repayments order can also be made in some circumstances if the LA or an occupier apply to a residential property tribunal.
Useful Contacts
For further information please contact:
The Housing Standards TeamHousing Regeneration Services Town Hall
Market Street Nelson
Lancashire
BB9 7LG Tel: 01282 661008 Fax: 01282 661043 Email: housing.standards@pendle.gov.uk
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