Private landlords face £50 licence

In a move aimed at improving standards for tenants in the private sector, a new scheme has been proposed which will force private landlords to buy a permit or licence.

[ClickPress, Mon Nov 03 2008] In a move aimed at improving standards for tenants in the private sector, a new scheme has been proposed which will force private landlords to buy a permit or licence. The licence, which will cost £50, could be revoked if the landlord does not meet certain statutory requirements on housing quality and management.

The government review of the private rented sector, carried out by the University of York’s centre for housing policy, found that half of private rented property did not meet the new decent homes standard required by law. It found that the poor condition of properties rented out by buy-to-let investors is “still worse than in either social housing or owner occupation”.

The review calls for the scheme to be policed by local authorities and industry bodies, with councils to play a leading role in targeting bad landlords. The licensing framework would allow environmental health officers (EHOs) to identify problematic landlords in their area and take measures against them, including preventing them from renting out their properties.

While the licence proposal was welcomed by the National Landlords Association, critics of it said that it would make things even harder for decent landlords already struggling with numerous rules and regulations, such as providing energy performance certificates, gas safety checks and tenancy deposit schemes. Critics also pointed out that times are already harder for landlords since there are fewer buy-to-let mortgages available as lending criteria has tightened, and that they should be supported rather than burdened with a new tax.

But with cities experiencing burgeoning labour markets, the need for good quality rented housing has become ever more urgent, and the proposals for improving and enforcing standards in this sector are needed to help weed out the worst abuses of ‘slum landlordism’.

The number of buy-to-let mortgages is thought to be around 1.2 million currently, so at £50 per licence, a total of £60 million would be paid by private landlords.

The review makes other recommendations, such as the mandatory regulation of lettings agencies, changes to stamp duty to support good landlords, and a new independent complaints procedure. The review’s findings and proposals will feed into the government’s housing-reform green paper due in December.




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