In 2015, the Government introduced a General Approval, granting local authorities the ability to establish Selective Licensing schemes.

Selective Licensing allows a local council to require every landlord of privately rented housing within a specified area to obtain a license for each property. 

This initiative is designed to improve housing conditions, tackle anti-social behaviour and crime, and focus on areas with significant deprivation. 

Local authorities are empowered to conduct property inspections and mandate landlords to address specific property-related issues. 

Selective Licensing schemes have been implemented by local councils in various cities across England, including Liverpool, Birmingham, Nottingham, Oxford, and several London boroughs. 

Most recently, Brighton and Hove City Council announced steps to improve the quality of privately rented properties in certain areas of the city. The proposed five-year scheme is set to commence in September and will affect around 2,100 properties in Kemp Town, Moulsecoomb & Bevendean, Queens Park, and Whitehawk & Marina.

 

The council plans to expand this scheme to an additional 9,500 properties across 13 other wards within the city.

According to the Government’s General Approval, the council must obtain permission from the Secretary of State for Levelling Up, Housing, and Communities. 

Under the proposed fee structure for licensing:

• A standard fee of £670 for five years is applicable.
• A £75 discount is available for properties with an Energy Performance Certificate (EPC) rating of C or above, or if a property meets its “potential” rating with a previous rating of E or higher.
• A £50 discount is offered for second properties onwards.
• A £75 discount is provided for registered charities.
• For landlords who fail to apply, the fee increases to £760.

It comes as no surprise that licencing schemes have been met with varying levels of frustration by landlords. Purportedly designed to weed out rogue landlords and meet the demands of the ever increasing numbers of tenants, Selective Licencing schemes may appear to be just another nail in the buy to let landlord’s coffin.

Aside from the cost of the licence (which is tax deductible), a decent landlord has nothing to fear from these schemes. Quality tenants demand quality properties and are willing to pay a good rent to secure one. They are also more likely to look after the property and stay for longer. 

Some local authorities offer discounts to accredited landlords, or to those who use an accredited agent to manage their properties. 

The team at Ello have experience of working within areas where Selective Licence schemes operate. Contact us for more information and advice on your landlord journey. www.elloproperty.co.uk

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