New Licensing Scheme is Extremely Complex, Warns Consultant
By |Published On: 14th August 2015|

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New Licensing Scheme is Extremely Complex, Warns Consultant

By |Published On: 14th August 2015|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

A property expert has described a new licensing scheme as one of the most complex to date.

The selective licensing scheme in Southwark, London is due to be implemented on 1st November. It will extend licensing to all private rental homes in some parts of the borough.

New Licensing Scheme is Extremely Complex, Warns Consultant

New Licensing Scheme is Extremely Complex, Warns Consultant

However, consultant Richard Tacagni says the area included in the scheme is much larger than it appears.

The council states the scheme “includes but is not limited to” certain roads.1

Tacagni, of consultancy firm London Property Licensing, says the scheme extends to 17 distinct areas, including 5,000 properties on 134 streets.

He advises landlords and letting agents to study the license requirements very carefully.

Alongside the new licensing scheme, the council is extending the existing House in Multiple Occupation (HMO) licensing to all HMOs in the borough. This includes every property that is shared by three or more unrelated individuals and encompasses around 10,000 homes.

The selective licensing fee is £500 per property for five years and the additional HMO fee is £250 per bedroom. This equals £1,250 for a five-bedroom shared house.

Tacagni reveals that this is one of the highest fees in London.

In another borough, a legal challenge against a licensing scheme in Croydon has been rejected by the High Court.

Croydon Property Forum, a group including agents, landlords and developers, applied for a judicial review. The judge, Sir Stephen Silber, denied the application, saying the council had consulted properly.

The borough-wide scheme will come into force on 1st October.

1 http://www.propertyindustryeye.com/agents-warned-new-licensing-scheme-is-one-of-most-complex-to-date/

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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