Landlord Licensing Scheme
Licensing Schemes and HMO Licensing Regulations
Most private rental properties in our borough now require licences, which in turn has helped to raise standards in the private housing sector, creating high quality and affordable accommodation for Brent & Harrow residents.
Although complicated for Landlords, Property Hub's experienced lettings team can help alleviate many of the issues it presents for landlords and take the burden of responsibility off their shoulders.
What is Licensing and Who Does it Affect?
The Housing Act 2004 introduced licensing for houses of multiple occupation (HMOs). The Act provides a detailed definition of HMOs and sets out standards of management for this type of property. Most of the Act came into force on 6 April 2006, except for sections relating to converted blocks of flats. These sections are come into force during 2007, but if you are the landlord of, or manage, such a block you should check with your council whether the act applies to you. Under the new laws, there are two types of HMO licensing: mandatory licensing and additional licensing.
Licensing is mandatory for all HMO properties, which have three or more storey’s and are occupied by five or more persons forming two or more households. Additional licensing is when a council can impose a license on other categories of HMOs in its area which are not subject to mandatory licensing.
Around 12 raids are carried out by the council's enforcement team in Brent every week, averaging more than 600 raids a year. Landlords and agents who are running unlicensed properties will eventually be caught and prosecuted. If you fail to get a licence, you could receive an unlimited fine and be given a criminal record.
Types of License
Mandatory Licensing Scheme
This applies to houses in multiple occupations (HMO's) of three or more storeys occupied by five or more people, making up two or more households.
Additional Licensing Scheme
This applies to all privately rented properties occupied by three or more people making up two or more households, regardless of the number of stores in the property.
Selective Licensing Scheme
All privately rented properties in Dudden Hill, Queens Park, Mapesbury and Kensal Green wards must have a property licence in Brent while in Harrow Borough only Wealdstone ward.
License Application Handling Service
With an estimated 209,000 private rented homes needing a property license in London, many landlords find themselves struggling to understand the rules and yet fearful of getting it wrong.
In London, there are over 20 different property licensing schemes each with different terms and conditions. In some areas, you only need a license for larger Houses in Multiple Occupation (HMOs) comprising three of more storeys and five or more people. In other areas, licensing has been extended to all house and flat shares with three or more occupants. Some council has extended licensing to all private rented homes, even if a single family occupies them. The reason people get confused!
Failing to have the correct license for your property can lead to criminal prosecution and a hefty fine, an order to repay up to 12 months’ rent and the inability to evict your tenants using a Section 21 Notice of Seeking Possession.
New rules that implemented in April 2017 will mean the landlord and letting agent could be served with a civil penalty of up to £30,000, which is now set for unlimited fine. Later in 2017 we expect to see a new rogue landlord database and the most prolific offenders could receive an indefinite banning order.
Regardless of whether you decide to use our service, we would strongly advise you to comply with any licensing requirements at the earliest opportunity. You can pay a small price for getting your property licensed or risk much higher reputational and financial penalties.
Want to know more about how we can help you with licensing? Talk to our lettings team TODAY!
Email info@propertyhubltd.com or call 0208 903 1002
For more information on licensing in the Wembey, Brent and Harrow area visit:
https://legacy.brent.gov.uk/media/16419678/conditions-for-the-selective-propoerty-licensing.pdf
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