Rental licensing rules explained after Rachel Reeves’ property error
Chancellor Rachel Reeves, Downing Street No. He admitted he made an “inadvertent mistake” by not obtaining the required “selective” letting license for his south London home when he moved into 11.
Ms Reeves apologized for the error and confirmed she had applied for the licence.
Here are the rules and possible consequences of not having the correct license.
What is selective licensing?
Local authorities in England and Wales have the power to impose a licensing scheme covering all privately rented properties in a particular area.
It is designed to protect tenants against landlords renting out poorly maintained properties, but it is also being introduced due to concerns about ongoing problems of anti-social behavior in rental properties.
If a private landlord wants to rent a property in the designated area, he must apply for a licence.
Local authorities should contact people in the area to keep them informed of plans to implement the program and display information on their websites.
However, even if they have been advised by a letting agent to manage their property, it is the landlord’s responsibility to apply for a license if they need it.
Do the rules vary from region to region?
Yes, each local authority will have different rules and requirements for privately rented homes in the area.
There are 47 local authorities in England running selective licensing schemes, according to analysis by the National Residential Landlords Association (NRLA).
Licensing fees will also vary, although the national average is around £700 per property and each scheme can last up to five years, according to Direct Line’s research.
In the London borough of Southwark, where Rachel Reeves rents her home, a selective licensing regime applies to designated areas across the borough.
This means there is an enforcement policy for people who need a license and cannot get one.
What happens if you don’t get a license?
If a property does not have the correct licence, the landlord and letting agent may be fined or face prosecution.
This can be an unlimited fine or a financial penalty of up to £30,000 per offence.
Landlords may have a rent repayment order issued against them; This means they will have to pay back the rent collected while the property was unlicensed for up to a year.
Does selective licensing improve living standards?
Chris Norris, chief policy officer at the NRLA, said: “Every landlord’s first priority is to ensure that the properties they rent are safe and meet all required standards.
“While selective licensing can play a role in ensuring standards, it should not be seen as a panacea.
“NRLA data shows there is no clear link between a council having a licensing scheme and enhanced levels of enforcement against fraudulent and criminal landlords.”
Timothy Douglas, head of policy and campaigning at industry group Propertymark, said he “does not think licensing schemes are an effective way of encouraging better quality accommodation in the private rented sector”.
“This is because most schemes fail due to insufficient resources to undertake the necessary enforcement activity,” he said.
He added that plans can often “be more costly to run rather than fees.”
