Landlords licensing scheme is abandoned by council

AFS Team·20 March 2014·4 min read

Landlords licensing scheme is abandoned by council
Landlords around the UK are increasingly facing the prospect of being forced into signing up for council-run licensing schemes which are aimed at rooting out rogue landlords but for many it's just an extra cost to bear.

Now one council is going against the trend and has abandoned its plans for a city-wide selective licensing scheme which would have covered 18,000 homes.

Milton Keynes City Council says that such a scheme would not solve the issues they are facing of poor housing standards, low housing demand and anti-social behaviour.

Selective licensing scheme is scrapped

The news was welcomed by the National Landlords Association which had been lobbying to stop the scheme from being rolled out.

In addition, the council has also announced that the licence it charges on houses in multiple occupation (HMOs) will be reduced from £800 to £300.

The NLA's chief executive officer, Richard Lambert, said: “While selective licensing is a powerful tool for local authorities it should be used only when appropriate so this is fantastic news for Milton Keynes landlords.

“The council is now saying that they will take a more proactive stance and use the existing powers they already have to combat poor housing standards in nearly, which is an approach that we have argued is more effective.”

He added that the NLA was now committed to working with the council to improve the property standards, promote best practice and encourage further co-operation between landlords, the council and tenants.

Landlords face rising council costs

The news about scrapping the licensing scheme comes after a recent investigation by the Daily Telegraph which highlighted what the Residential Landlords Association describes as a 'creeping plague' of costs.

Schemes vary on a council-to-council basis but the costs for registration for a single property can rise as high as £1,100.

Landlord organisations also question whether the intent to drive up standards in private rental accommodation is really what is behind the growing popularity of such schemes - the claim that they are simply a cash generating exercise to help boost council coffers.

The article also highlighted issues with council tax arrangements with various local authorities deciding whether or not to apply Class C council tax dispensation. Under a 2013 change in responsibilities, councils can offer exemptions and discounts on empty properties.

This has obvious benefits for landlords during a void period but many authorities, according to the Telegraph, have now scrapped the dispensation which means that increasing numbers of landlords now have to pay council tax for when their properties are left empty.

To underline the 'zero tolerance' approach taken by some councils, some landlords are being charged for just one day of council tax between tenants moving out and moving in.