Durham has recently conducted a public consultation on the introduction of Selective Licensing for private rented properties in certain areas of County Durham.
What is a selective licence?
Landlords must apply to the local authority for a selective licence when required. The council will assess if the landlord is a “fit and proper person” and impose conditions related to the management of the property and necessary safety precautions.
The penalties for not having a license can be quite severe, so it is advisable to apply for one promptly if you are in an area that requires it. Landlords may incur significant fines and may be be barred from renting.
Why does Durham want to implement selective licencing?
Durham Selective Licensing regulates landlords and managing agents of private rented properties, where there is an issue with low housing demand or significant and persistent antisocial behaviour problems.
Selective licensing schemes typically lasts for five years.
The council issued a list of proposed areas, but this can be added to without further consultation with approval from either the Council or Secretary of State.
What do they mean about being a ‘fit and proper person?’
- offences involving fraud or other dishonesty, or violence or drugs, or any offence listed in Schedule 3 to the Sexual Offenders Act 2003
- any unlawful discrimination on grounds of sex, colour, race, ethnic or national origins, or disability
- any breaches of housing or landlord and tenant law
How do I apply for a selective licence in Durham?
Once the Durham Council has made its decision, landlords will be required to apply for and pay approximately £500 for a licence for each residential property they rent out in designated areas. They must demonstrate that they have adequate management arrangements, are fit and proper persons, adhere to the licence conditions, and contribute to addressing anti-social behaviour in their properties.
What will the council need from my property management records?
The council may request copies of safety certificates, the locations of smoke and carbon monoxide detectors, and information regarding your tenants and tenancy agreements.
In certain situations, such as a landlord residing overseas, another individual must hold the licence. When this happens, the council will verify that the applicant is suitable and actively involved in the property’s daily management.
How does selective licencing differ from other forms of licencing?
There are other types of property that require a licence. These include large HMOs (houses of multiple occupation, where several unrelated tenants live together) that fulfil certain criteria. Smaller HMOs may also require a licence depending on the area, so check with your council. If you need a mandatory HMO licence, you do not need a selective licence too.
Are there likely to be any exceptions?
Some properties are exempt from selective licensing, including:
- Holiday lets
- Business premises
- Student premises where the university is the landlord/manager
- Premises where the tenant is a family member
What happens now?
All properties should be managed to a certain standard. Check records to ensure you have everything needed. If breached, you can be prosecuted or face a civil penalty of £30,000
Every licence contains mandatory conditions and the local authority can include additional conditions. These are:
- mandatory licence conditions (eg gas safety, electrical appliances and furniture safety, smoke and carbon monoxide detection, tenancy agreements and references)
- conditions around the tenancy management (eg tenancy deposits, access to property, rent payments and documentation)
- conditions around property management (examples include ensuring property is safe, secure and maintained, energy performance, and removal of waste)
- conditions around complaints of anti-social behaviour
If you are in any doubt, contact us for assistance. We can apply for a licence on your behalf and ensure you are legally compliant.
For more information contact us
