Council to hit landlords with UK's most expensive selective licensing scheme
A public consultation has been launched that would lead to one of the UK's largest - and most expensive - selective licensing schemes for private rented property being created.
The scheme would require landlords in 23 of Lambeth Council's 25 wards to pay £923 per property from September 2024.
Lambeth also says it will extend the scheme in 2025, subject to the approval of the Secretary of State.
The council already operates London's priciest HMO licensing scheme, charging £506 per bedroom so a landlord with a four-bedroom HMO is paying £2,024.
Number of PRS households in Lambeth has increased significantly
The council says that the number of PRS households in Lambeth has increased significantly, and the licensing scheme will help to ensure that they have decent and safe accommodation.
The public consultation on the proposal will run until February 2024.
Cllr Maria Kay, the cabinet member for housing and homelessness, said: "We have already taken significant action to tackle poor standards in the private rented sector, and although most landlords operating in Lambeth provide our residents with decent, well managed and safe homes, we continue to uncover renters living in hazardous and unacceptable conditions.
"We are focussed on improving health and wellbeing and reducing inequalities for people in Lambeth.
"That's why we have launched our consultation on the private rented property sector as part of our commitment to addressing these issues."
New licencing scheme for private rented property
News of the consultation in Lambeth comes just days after the Secretary of State approved a new licencing scheme for private rented property in Lewisham.
The scheme will affect 20,000 homes and will begin on July 1 next year - landlords will have to pay up to £750 per property for the five-year duration of the scheme.
The council had initially planned to licence 32,000 properties, but the Secretary of State reduced this number, and the scheme is separate from the council's existing HMO licencing scheme.
And Brent's selective licensing scheme has just received the green light from the government in what the council calls 'a big victory for both tenants and landlords'.
The scheme – among the biggest in London - is set to launch in the spring when all landlords in the London borough, except those in Wembley Park, will have to get a licence.
Growing number of selective licensing schemes
If landlords feel under pressure from the growing number of selective licensing schemes, then be aware that the Chartered Institute of Environmental Health (CIEH) is pushing for STRONGER licensing schemes in the Renters (Reform) Bill.
The group argues that the proposed property portal is not a substitute for landlord licensing and that local councils should have the power to set licence conditions to enhance housing standards, with schemes lasting up to 10 years.
The CIEH has submitted its evidence on the Bill to the House of Commons committee, proposing that local authorities should not have to seek general approval for schemes that cover more than a fifth of their area.
The group also urges the government to abolish the requirement for environmental health officers to notify landlords and tenants 24 hours before inspecting property conditions, as this allows landlords to show up at the inspection and potentially intimidate tenants.
The organisation's executive director, Louise Hosking, said: "Following our oral evidence to the committee last month, we are determined to continue making the voice of environmental health professionals heard on this crucial piece of legislation."
'New and extended selective licensing schemes'
Simon Thompson, the managing director of Accommodation for Students, said: "Landlords around the country could be forgiven for feeling under the cosh with new and extended selective licensing schemes being announced.
"There are a number of issues to consider and the first is why are the licensing schemes so expensive? What do landlords and tenants get for the money?
"And councils ignore the fact that the cost will lead to higher rents."
He added: "But the big issue is that landlords say that councils don't inspect properties like they set out to do so criminal landlords can carry on regardless.
"Instead, it is the honest landlord trying to provide a home for a tenant who will be the focus of an inspection visit - and face the potential of ruinous fines.
"We need to think again about how effective licensing is, but I don't agree with the CEIH that the rules need to be stronger - I say the rules we have already need to be enforced properly."
