Durham recently held a consultation with the public regarding bringing in Selective Licencing of private rented homes in some areas of County Durham.
What is a selective licence?
In areas where your private rented home is identified as needing a selective licence, landlords must apply to the local authority if they want to rent out a property. The council will then check whether you are a “fit or proper person” to be a landlord, as well as making other stipulations concerning management of the property and appropriate safety measures.
The punishment for not having a licence can be extremely high so we recommend if your in an affected area, you need to apply sooner rather than later. Potentially, there are fine and potentially Landlords could be told that they are unable to rent out a property in future.
Why does Durham want to implement selective licencing?
Durham Selective Licencing give them powers to regulate landlords and managing agents of private rented property if it is satisfied there is a problem with low housing demand or where there are significant and persistent problems of antisocial behaviour.
Selective licensing schemes run for five years.
The council have 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 (depending on size).
What do they mean about being a ‘fit and proper person?’
This means Landlords/Agents are assessed for any:
- 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 Durham Council have reached their decision, you will need to apply and pay for a licence of approximately £500 for each residential property they rent out in each designated area, and prove you have adequate management arrangements in place, are a fit and proper person, follow the licence conditions, and help to deal with anti-social behaviour in their properties.
What will the council need from my property management records?
The council may want to see copies of safety certificates and to know the location of smoke and carbon monoxide detectors, as well as details of your tenants and tenancy agreements.
In some cases – for example, if the landlord lives abroad – someone else will need to hold the licence, in which case the council will check the person making the application is the most appropriate and is involved in the day-to-day management of the property. A licence lasts five years.
How does selective licencing differ from other forms of licencing?
There are other types of property that require a licence, even if they are not in a selective licensing area. 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. These include:
- 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, regardless of selective licencing. Check records to ensure you have everything needed as with a breach, you can be prosecuted or face a civil penalty of £30,000
Every licence must contain certain 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 the 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