Posts with tag: landlord licensing

RLA Criticises Landlord Licensing Schemes

Published On: November 18, 2015 at 10:01 am

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The Residential Landlords Association (RLA) has criticised local authorities that charge landlords for licenses simply to collect information on the amount of landlords in the area.

RLA Criticises Landlord Licensing Schemes

RLA Criticises Landlord Licensing Schemes

The body says that these types of schemes are “without reason”. It also describes licensing schemes as a tax on tenants, as landlords sometimes pass the costs onto renters.

The RLA stated its opinion after a letter was sent to all councils in England from the Department for Communities and Local Government, saying that councils already have the power to request information from tenants on a property’s tenure and landlord identity.

The RLA insists that this enables every local authority to build a register of landlords.

It says that this reveals the “expensive folly of licensing”, criticising schemes that oblige landlords to register and charge them for doing so.

The RLA has campaigned for tenants to be asked to identify their landlord on Council Tax registration forms, as this is a more effective way of finding all landlords, including rogue landlords that would never come forward to be licensed.

Chairman of the RLA, Alan Ward, says: “The RLA is calling on councils to now drop the tenants’ tax that licensing has become. They should use the powers they already have to identify all landlords and go after the criminals.

“Councils have always had the power to identify all landlords. This letter is a reminder from the Government that they should use it instead of creating bureaucratic licensing schemes, which tenants ultimately have to pay for.

“Asking tenants to identify their landlords is far more effective in finding and rooting out the criminal landlords who never willingly make themselves known.”1 

Does your council require you to be licensed? And do you have to pay?

1 http://www.propertyindustryeye.com/licensing-schemes-under-new-attack-by-residential-landlords-association/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mandatory HMO Licensing to be Extended

Published On: November 9, 2015 at 4:10 pm

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The compulsory House in Multiple Occupation (HMO) licensing scheme is set to be extended to include two-storey homes and bungalows. It will also enforce a minimum bedroom size rule.

The new regime means that from next year, all HMOs in England with five or more occupants would be included in the mandatory licensing scheme.

Mandatory HMO Licensing to be Extended

Mandatory HMO Licensing to be Extended

The crackdown on single-storey properties is set to combat beds in sheds. The minimum bedroom size would be 6.5 square metres.

The proposal also suggests that some blocks of flats should be classed as HMOs if they have been converted to a poor standard.

At present, the obligatory scheme applies to shared rental properties of three or more storeys, occupied by five or more renters that do not form a single household.

A new consultation on the matter has opened, which proposes an extension to the mandatory scheme throughout England. It would still stick to the five or more tenants and at least two households rules.

The technical discussion document relates to comments made by the Prime Minister in May, when he announced a new mandatory licensing scheme.

The paper, released by the Department for Communities and Local Government, claims that some landlords are not just failing to operate their HMOs properly, but are exploiting renters, “and often the public purse through housing benefit, by renting substandard, overcrowded and dangerous accommodation to vulnerable tenants”.

It notes that not all local authorities have introduced their own additional licensing schemes.

It states: “Many landlords and agents do an excellent job in managing their HMOs to high professional standards, but that is far from universal.”

It adds that it has become “an increasing priority to ensure smaller HMOs are adequately protected and properly managed”.

Currently, landlords are exempt from selective licensing schemes if they let to family members. However, the Government plans to remove this exemption, as it believes it has been abused.

The document says that local authorities have spent time and money trying to establish the identities of various tenants.

The consultation closes on 18th December 2015, with the changes set to be introduced next year.

Meanwhile, local authorities are planning to introduce their own additional licensing schemes, including those that encompass large areas or even the whole city or borough, covering all rental properties.

The latest scheme is in the London Borough of Hammersmith & Fulham, which plans to introduce licensing to all private rental homes in one fifth of the borough.

In Blackpool, the first five prosecutions have been brought against landlords that have failed to apply for licenses.

The new consultation document can be found here: https://www.gov.uk/government/consultations/extending-mandatory-licensing-of-houses-in-multiple-occupation-and-related-reforms

Landlords and Letting Agents in Scotland and Wales Prepare for Licensing

Published On: August 26, 2015 at 10:48 am

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The Scottish Government has launched a consultation on a new code of practice for letting agents and a compulsory requirement for agents to undertake training before they can register.

Additionally, landlords and agents in Wales are preparing for mandatory training and registration. Although an exact date has not been specified, enforcement of the Rent Smart Wales scheme is due for this autumn.

In England, the Housing Minister, Brandon Lewis, has insisted that the lettings industry will not be regulated, despite concerns surrounding the sector. Recently, a franchise of Enfields suddenly closed, leaving tenants and landlords worried about the consequences. Find out more: /police-called-to-investigate-agency-that-suddenly-closed/

Landlords and Letting Agents in Scotland and Wales Prepare for Licensing

Landlords and Letting Agents in Scotland and Wales Prepare for Licensing

The Housing (Scotland) Act provides an outline of the regulation of letting agents in Scotland. It includes:

  • A mandatory register of letting agents, including a fit and property person test.
  • Required training before admission to the register.
  • A statutory code of practice for all letting agents.
  • A system for tenants and landlords to resolve disputes with letting agents for breaches of the code of practice, via a new specialist First-tier Tribunal.
  • Powers for Scottish ministers to obtain information, monitor compliance and enforce regulatory requirements.

Scottish Housing Minister, Margaret Burgess, says: “The Scottish Government wants to see a private rented sector that provides good quality homes and high management standards, inspires consumer confidence and encourages growth.

“Letting agents are vital to helping achieve this vision, and this new framework, including the code of practice, will support the industry to improve standards, provide a good service to both landlords and tenants and empower customers.”1 

The Scottish consultation, which closes on 15th November, can be found here: https://consult.scotland.gov.uk/better-homes-division/lettingagentconsultation

In Wales, the new registration and licensing scheme, Rent Smart Wales, will be introduced this autumn. It involves:

  • The legal requirement for all private landlords to register with Rent Smart Wales and to register their properties.
  • Whoever manages the properties – the landlord or appointed agent – must be licensed and show that they are fit and proper to hold a license and undergo approved training.
  • Once part of the scheme, landlords and agents must keep their information up-to-date and comply with all requirements.

Landlord Ordered to Pay £25,000 for Breaching Safety and Licensing Rules

Published On: July 20, 2015 at 4:18 pm

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A landlord has been ordered to pay £25,151.92 after being found guilty of breaching safety and licensing rules.

Landlord Ordered to Pay £25,000 for Breaching Safety and Licensing Rules

Landlord Ordered to Pay £25,000 for Breaching Safety and Licensing Rules

Emmil Seeson Watson (also known as Emil Wayne Watson) of Reading, Berkshire pleaded guilty at Hammersmith Magistrates’ Court to five charges under the Housing Act 2004.

Watson did not have the required license for the amount of tenants living in his rental property and did not conduct gas safety checks.

On 8th October 2014, environmental health officers from the Royal Borough of Kensington and Chelsea visited Watson’s rental property in London W10, after tenants complained about a leaking roof. The renters could not have the roof repaired, as they were unable to contact Watson.

Up to seven tenants were living in the house, despite Watson not having a House in Multiple Occupation (HMO) license, which is required under the Housing Act 2004.

The Court was told that Watson had avoided cooperation with the council and had made it very difficult for it to contact him. Despite two previous warnings, Watson did not obtain the required license.

Since 2012, three emergencies had occurred at the property, including a leak that caused a ceiling to collapse and a window that needed repair after a burglary. Tenants were forced to complain to the emergency services and the council, as Watson could not be contacted.

Watson told the Court that if he licensed the property, he would have to increase the rents. However, some rents had stayed the same for many years. He also claimed to have paid several bills for the property out of the rents he collected.

He said that he would not replace the tenants that have left, therefore reducing the amount of people living at the property and removing the need for a license.

However, the Bench Chairman said that Watson had put his tenants in danger and failed to follow clear warnings regarding the licensing of the property.

 

ARLA Criticises Additional Licensing Scheme in Wales

Published On: June 29, 2015 at 12:55 pm

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ARLA Criticises Additional Licensing Scheme in Wales

ARLA Criticises Additional Licensing Scheme in Wales

The Association of Residential Letting Agents (ARLA) has criticised plans to form a private sector licensing scheme in Cardiff, as it arrives just before Wales introduces a compulsory licensing scheme for landlords and agents.

The obligatory licenses cover the whole country and will be administered by Cardiff City Council.

The Managing Director of ARLA, David Cox, says that it is “illogical” to launch a new additional licensing scheme so close to the introduction of the Welsh Agent and Landlord Licensing Scheme (WALLS).

He continues: “We would strongly argue that Cardiff Council should allow WALLS to be implemented and properly evaluated before creating potentially an entirely unnecessary secondary layer of local licensing.

“Indeed, it is important to remember that imposing multiple layers of additional compliance on landlords will only increase the costs of operating a rental portfolio, which in turn will result in a reduction in supply of properties in the designated area and thus increased rents for tenants.”1

Cox wrote in a letter responding to a consultation by Cardiff on its plans to introduce the additional licensing scheme. He says that ARLA is questioning the Council’s lawful ability to do so.

1 http://www.propertyindustryeye.com/arla-hits-out-at-citys-plans-for-additional-licensing-scheme/

 

 

 

 

 

 

 

 

 

 

 

 

Queen’s Speech Did Not Cover Compulsory Landlord Licensing

Published On: May 28, 2015 at 3:20 pm

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Yesterday’s Queen’s Speech did not give details or even mention compulsory licensing of private landlords, which the Prime Minister pledged last week.

Website Nearly Legal has criticised the probable immigration laws, believing that the “full horror” is just setting in.

Nearly Legal says: “It is clear that the Government intends to use immigration law as an excuse to introduce some radical – and conceptually awful – reforms to housing law… New laws will mean that a tenancy will automatically end if the tenant is unlawfully present (e.g. if their visa ends) and there will be steps taken to make it easier to evict illegal immigrants.

“The full horror of this last part is just sinking in. Leaving aside the utter unreality of expecting landlords to understand immigration law, how on earth can a tenancy be ended because of a transitory personal status?

“This is going to be a disastrous legislative programme doing untold damage to the interests of landlords, tenants and housing law itself. The only clear winners from this will be the lawyers.”1 

The Queen’s Speech only briefly mentioned immigration controls regarding right to rent, with David Cameron proposing licensing for private landlords only days ago.

Some property experts are wondering if this will mean a new national registration scheme for landlords, whether it will include letting agents and if it would be a part of local licensing schemes.

Queen's Speech Did Not Cover Compulsory Landlord Licensing

Queen’s Speech Did Not Cover Compulsory Landlord Licensing

However, not all local authorities have licensing schemes in place other than the mandatory House in Multiple Occupation (HMO) system. Currently, landlords must have an HMO license if their rental property has three storeys or more, is shared by five or more people in over one household and if the tenants share a toilet, bathroom or kitchen.

The Residential Landlords Association (RLA) believes that the a new scheme would cause problems: “While seeming to dispel concerns over a general, national landlord licensing requirement, a great many homes and landlords not currently covered by local additional licensing schemes could find themselves caught under a new mandatory scheme.

“This will also place local authorities under substantial pressure as they will have to process the large number of applications for new licenses, assess the properties and carry out further enforcement against those who have not sought licenses.

“Given that, as the RLA has highlighted, current enforcement is often patchy, a new further area of enforcement work may make the situation worse rather than better.”1

Despite a licensing scheme not yet apparent, it appears that the Queen’s Speech hinted at all landlords and letting agents soon having to carry out immigration status checks on tenants.

Legal expert David Smith comments: “It is clear that the right to rent scheme will be rolled out fairly rapidly and there was an oblique reference to a mandatory licensing scheme for landlords.

“This is of great concern, but until more details are available it is not clear whether this is a new licensing scheme, as is about to be introduced in Wales, or something smaller such as widening of current HMO licensing provisions.”1

Chief Executive of estate agency Spicerhaart, Paul Smith, is also concerned over the roll out of immigration checks: “The policy issue underlying these new rules is tackling illegal immigration into the UK – a laudable aim – but passing this task onto landlords, and inevitably letting agents acting in their best interests, is misplaced.

“Landlords and letting agents are not border control agents and adding another layer to the administration means agent fees will increase, as all checks and referencing are labour and time intensive. Ultimately, the tenant pays the price.”1 

1 http://www.propertyindustryeye.com/compulsory-landlord-licensing-still-on-agenda-despite-queens-speech-silence/