As Right to Rent legislation comes under pressure, two landlords at opposite ends of the country reveal the impact selective licensing is having on them.
Selective licensing means private landlords are required to obtain a licence allowing them to rent properties within their area, aiming to address poor quality landlords and anti-social tenants.
Housing minister Gavin Barwell is a well-known critic of local authority licensing schemes governing the PRS, but this year alone has already seen consultations popping up right across the country.
Landlords are beginning to fight back though, with Fenland Council and North Somerset council no longer going ahead with their plans.
Increased interest in licensing appears to be directly linked to the growth of the sector (now the second largest tenure in England), where local authorities are now realising the money they can generate through landlord licensing; even though central government prefer voluntary accreditation schemes to be implemented.
John B – North Ormesby, Middlesbrough:
‘As a landlord of 16 (well kept) buy-to-let properties in North Ormesby, I’m up in court tomorrow for failing to pay for my licence.
We received a letter in August/September 2015 about it being rolled out from January 2016, but when the deadline came around it coincided with a 13k tax bill so I couldn’t afford to pay the extra £9,280 licensing fee on top of that (£580 per property).
So I called the council and explained my situation, who told me that if I didn’t pay the full amount by the 31st January that I would be fined £100 per house.
I tried to explain I couldn’t because I didn’t have the funds available what with the 13k tax bill; I wasn’t trying to avoid it but that I physically couldn’t afford to just pluck 9k out of the air; especially as my properties have never experienced any anti-social behaviour issues or repair orders.
When I was told this didn’t matter, I asked if it was possible to set up a payment plan and was told in no uncertain terms that the council is not a finance company and must collect what is owed in full.
I’ve been to a solicitor but he says this is not a defence, using the analogy ‘It’s like if you’ve got a car on your drive, no money to tax it but you still need to drive it; then you’ve still got to tax it.’ But it’s not the same situation though, is it?! When you buy a car you know you have to tax it, but when I bought the properties no-one told me about selective licensing…
Middlesbrough tried this before in the TS1 area in 2008/09 I believe. And just two years later it was scrapped and no-one got their money back.
The Inland Revenue would be willing to set up a payment plan, but the council “cannot”…
As a local landlord and property developer, this is my main source of income. All I’m trying to do is provide for my family for a decent life.’
Jon M – Hastings:
‘I am a landlord with two properties that fall within the Selective Licensing areas of Hastings, East Sussex.
Both of my properties are very well kept, meet all regulations with regard to fire safety, have no repair issues. I manage both of them myself and have a good communicative relationship with both of my tenants.
I have never had an issue with anti-social behaviour from either of the tenants.
Hastings Council are accusing me of being an irresponsible Landlord if I do not give them £440 per property within 30 days. They say they offer support and education for the money, however, other Landlords who have paid the fee have not received anything of the sort.
This is an outrage and a completely embarrassing attempt at controlling the ASB situation. The Council will no doubt spend more time and money chasing innocent Landlords for money, rather than supporting those within our community that need help.
I’m sure that the landlord will be to blame again come assessment time of the schemes failure.’
Click here to view the original article ‘Landlord case studies on selective licensing’
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