A local authority faces the possibility of a judicial review just three months ahead of its plans to introduce Newham-style blanket licensing of all rental properties.
Landlords and letting agents in Croydon are currently being warned they must get their properties licensed or face possible legal action, following a decision made in March by Croydon Council to roll out borough-wide selective licensing.
However, that decision is now being challenged by a group of landlords, on the basis of allegedly poor consultation.
A judge is expected to rule within two weeks whether there are grounds for a judicial review of the scheme, expected to cover 30,000 private rented homes from October 1 onwards.
The new selective licensing scheme, known locally as the ‘Croydon Private Rented Property Licence’, will extend licensing to almost every house or flat let out to an individual, couple or single household anywhere in the borough. There are very few statutory exemptions.
The council says it will implement the new scheme to tackle significant and persistent problems with anti-social behaviour and to address poor property management. Before implementing the scheme, the council conducted a public consultation exercise during which 70% of private tenants and local residents said they supported the scheme whilst most landlords and letting agents who replied were opposed to the idea.
Landlords are being encouraged to apply early and benefit from a discounted fee of £350 per property from yesterday to the end of September.
After that, the fee will increase to £750 per property, which will become the highest selective licensing fee in London.
Assuming about half of properties apply early and benefit from the discounted fee rate, the scheme could generate over £15m in fees for Croydon Council, equating to £3ma year over the next five years. All the money raised will need to be reinvested , as councils are not allowed to profit from licensing schemes.
Richard Tacagni, managing director at consultancy firm London Property Licensing, said: “It is really important that the council widely publicise this new scheme to raise awareness amongst the many landlords who live outside the borough – either elsewhere in London, the country or abroad.
“I have recently spoken to several landlords who had no knowledge that their single-family rented properties in Croydon will soon need a licence.
“With different licensing criteria being adopted by each London Borough, this is becoming a major headache for landlords and causing a lot of confusion. That is why I set up the London Property Licensing website to help landlords identify what licensing requirements apply to their properties.”
A spokesperson for Croydon Council said: “We are confident that our landlord licensing scheme is robust, lawful and will raise housing standards across the borough, and we’ll continue preparing to launch this scheme from October 1.”
Comments (5)
As a landlord with a few properties in Croydon the first I knew about this scheme was when I received a letter yesterday. With this scheme in place I would certainly not consider buying any more properties in Croydon and will probably seek to sell the ones I’ve got. It strikes me as a License for the council to print money and an attack on landlords who are after all providing a valuable resource. The aim seems to be to combat anti social behaviour by tenants. If that’s the case then why not license tenants rather than expect landlords to police their behaviour. Sadly I can see a lot of good tenants now losing their homes as landlords sell creating a shortage of property and an increase in rents. Will the council step up to provide homes for those who then can’t afford to rent. A very poor, Big Brotherish decision by Croydon council, sneaked in with no effort made to consult with those who it will affect.
Come down the road a little to Burgess Hill – As a reputable family agency Im sure we can assist and provide a great service whatever the level you need. Wont advertise here but im sure you will find us.
Another ROGUE COUNCIL. Clearly in it to raise funds for their coffers. Local Authorities cannot be trusted. They have show their colours with parking enforcement. In the borough where I live they have not issued a single ticket for litter dropping but rigorously enforce parking. Easy to work out; motorists are easily traceable litter droppers are not! Landlords are an easy target in the same way.
In fact Croydon are clearly using a similar scheme to PCN’s punitive charges but if your register early your get a massive discount of circa 50%.
This whole Licensing thing needs to be re-assessed by Government (in consultation with the industry) and then applied in a fair and simple to understand manner. The fact that landlords are continually mounting legal challenges indicates what a shambles the whole thing is right now. Too many decent landlords are being penalised for the actions of the unscrupulous ones. And that’s not right.
It will drive up rents as landlords will need to recover their running costs or others will sell up and reduce supply equally driving up rents due to excess demand. This is, without doubt, about raising funding for councils. You are of course right the good are being punished for the actions of the few.