Housing minister Jacob Young recently scotched rumours that the property portal proposed in the Renters (Reform) Bill would remove the need for selective local authority licensing. Instead, pending a future review of such schemes, they will continue to apply – even after the passing of the Bill – leaving non-compliant landlords and managing agents at increased financial risk.
Selective licences were introduced as part of the 2004 Housing Act and implemented two years later. They were intended to improve the quality of homes in the private rented sector.
The minister’s statement said: “The portal will be a resource for local authorities and to help landlords understand their legal obligations, while selective licensing gives councils powers to licence properties to address issues such as poor housing and crime. There will be overlap with data. We don’t want to see selective licensing abolished but want to ensure the processes are streamlined – that’s why we’re committing to a review of selective licensing and HMOs.”
Assuming the Renters (Reform) Bill is passed, this could mean both the portal and selective licensing will continue, and local authorities will remain responsible for enforcement.
In such a scenario, landlords face an increasing financial risk through non-compliance either through fines or rent repayment orders or both.
This increased burden of regulation – whether that be in finding suitable tenants or property management – puts the onus on landlords not just to remain on the right side of the law but to keep themselves updated on the changes.
According to Propertymark, there are 168 pieces of legislation facing landlords in England every day they are in business, and the chances are this number will only increase in the months and years to come.
There has never been a more necessary time for landlords to secure the services of a professional letting agent to look after the day-to-day running of their property portfolios.
