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Landlords & Investors

Warning Issued to Landlords Over Selective Licensing in London

Warning Issued to Landlords Over Selective Licensing in London

Warning Issued to Landlords Over Selective Licensing in London

The announcement of new selective licensing schemes by several London councils has stirred significant concerns among private sector landlords, particularly those who are amateurs, according to Phil Turtle, a legal expert at Landlord Licensing & Defence.

Councils in Brent, Lambeth, Lewisham, and Islington have either introduced new schemes or expanded existing ones, sparking unease within the landlord community.

Turtle elaborated: “The scheme requires landlords to pay £840 to Brent Council, which in return issues a council licence.

“This licence is filled with draconian conditions that, if not complied with, can result in criminal offences punishable at Level 5 on the criminal scale, leading to unlimited fines and a criminal record.

“Landlords, particularly those who are not legally trained, do not realise the implications of these licence conditions until it is too late.

“The occupancy of their properties may also be reduced in their licence below that permitted by legislation, leading to further fines for the council’s coffers.

“No one understands why councils across the land are on a mission to reduce the number of people who can live in each property but at Landlord Licensing & Defence we see it happening more and more.”

The schemes seem to target two distinct groups of landlords, Turtle noted. First, the good landlords who already comply with most regulations and provide decent accommodations, now find themselves charged simply to confirm their compliance. Second, the amateur or accidental landlords who, despite offering decent housing, might fall into the trap of hefty fines due to their lack of awareness about the licensing requirements.

Turtle emphasized: “Interestingly, landlords providing substandard housing, who deliberately avoid licensing their properties, seem to escape the council’s enforcement efforts.

“Despite the billions earned by councils from licensing schemes, the number of actual rogue landlords found and enforced against is minimal. Instead, the councils target well-meaning landlords and maliciously brand them as rogue landlords when they are nothing of the sort.”

The licensing fee, Turtle pointed out, is a substantial burden, especially for smaller landlords.

These landlords face the risk of substantial fines for non-compliance, with penalties reaching up to £30,000 per offence.

He added: “This raises ethical concerns, as these landlords often provide good-quality housing.

“We are concerned that the schemes prioritise easy targets – responsible and inexperienced landlords – over those deliberately providing poor housing.

“That then raises massive doubts about the scheme’s effectiveness in addressing the core issue of substandard housing.”

Landlord Licensing & Defence advocates for councils to adopt a transparent and evidence-based approach to improve housing standards. Collaboration with landlords and targeted enforcement against those offering poor quality housing should be the focus for a more effective outcome.