Heavy-handed councils are driving private landlords out of areas where selective licensing schemes are in place.
Local authorities such as Liverpool are inviting landlords who fail – for whatever reason – to register, to attend a voluntary interview under caution – the precursor to a criminal prosecution in the Magistrates Court.
Solicitor David Kirwan of law firm Kirwans has spoken out after being contacted by landlords with properties affected by selective licensing laws who he says have been ‘utterly devastated’ to find themselves hauled before the courts for failing to apply for a licence.
In worst-case scenarios, landlords can be handed a criminal record, an order to repay 12 months’ rent, or be banned from renting out a property in the future.
Even if councils choose to avoid the courts, civil penalty fines of up to £30,000 can be imposed.
Kirwan said there is now a real fear that landlords providing good quality accommodation in areas affected by the schemes will sell up and invest elsewhere, rather than risk falling foul of the rules.
He said: “I am currently representing decent, professional people who have ventured into buy-to-let only to find themselves facing a criminal record for failing to apply for a licence that in other areas of the city would not be necessary.
“We’re not talking about roguish, exploitative landlords here – rather, people who simply saw property as an investment that would see them through retirement.
“It is heart-breaking to watch them going through completely unnecessary criminal proceedings, simply for failing to apply for a licence.”
Using selective licensing legislation local councils are able to introduce penalties that go well beyond the mandatory government landlord licensing rules.
Each scheme applies to a designated area for a period of five years, and landlords have to apply for a licence for each home affected.
Councils across the country have embraced the legislation, but Kirwan says that the schemes have proved confusing for landlords, who are often unaware that their property even lies in a selective licensing area.
Kirwan said: “While there may be many unethical landlords who absolutely need to be weeded out, they operate in an entirely different manner to the many decent men and women, some of whom are only just entering the rental sector, who simply want to provide good quality rental accommodation.
“Landlords are now telling me that, rather than face this sort of frightening action, they will either sell up, or choose not to invest in property in affected areas in the first place. This will then reduce the choice of accommodation on offer for those renting.”
Selective licensing is being reviewed by the Government. The findings are due to be published next spring.
Comments (5)
I’m fairness, whilst I do support the well-meaning landlords, if they don’t know the rules, they simply shouldn’t be landlords.
I support the council taking action against these individuals as it is fair to do so, it isn’t the council’s responsibility to constantly remind landlords of their obligations, if anything its our responsibility as agents but for self managing landlords, the responsibility is entirely on their shoulders to keep up to date with rule changes.
It is no different to an unprofessional landlord converting a property to a HMO in an area with article 4.
Ignorance of the law, whether willful or not, is no excuse. What if landlords forgot they needed to have fire alarms or carbon monoxide alarms where necessary? Or forgot their responsibility to not overcrowd a HMO? Or forgot to apply for a HMO license?
No. Landlords who don’t know what they’re doing, with all due respect, should instruct an agent to manage their property and keep them up to date of their legal obligations.
I think there’s a group of LLs who have taken reasonable steps to ensure compliance (and there properties would attest to this), perhaps even have properties in other parts of the *same* town/city (perhaps even ones they’ve owned for years), but one specific area of the borough becomes licensed and, especially if they’re absentee LLs, might not know.
Worse than that though is in places like Nottingham, where city-wide SL exists, and NCC prosecute those who *have* registered but have perhaps don’t have their house quite up-to-spec, yet they ‘can’t find’ those that haven’t bothered to register at all. They shouldn’t be allowed to challenge a single person who has registered, until they have found all those that haven’t first!
It would seem you are not aware that Councils make no effort to trace or track landlords by using the Land Registry so unless a landlord is in the location he may not even be aware an area has selective licensing. They do not do their own due diligence!!! relying often on just a letter /notice to the property requesting information which might not always be correct. Indeed, I know of a case where the owner had a shop and upper part on a long lease and the leaseholder sublet to a AST when not permitted under the terms of the lease and the council had the wrong freeholder listed and refused to change it when it was pointed out to them. So it is perfectly possible a landlord might not be aware of a property being in a selective licensed area so not as open and shut as seem to think. Also not all managing agents are as professional or as perfect as you would like to project!
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How shameful that councils misuse powers they should never have been given. Many Councils have not demonstrated sufficiently high ethics to be given powers to issue fines or pcn’s. Such powers should only be granted to the courts. Courts should examine cases carefully to determine if there was an intention to avoid rather than not being aware. It should be compulsory for councils to serve notice on anyone with a legal interest in a property and registered at the land registry to be served with notice of intention to introduce a licensing area and again when any scheme has been approved to give owners a chance of knowing how changes might affect them. Should a tenant receive any notice addressed to a landlord it should be mandatory that such information is forwarded to reach the landlord with criminal action if they fail to do so or be held fully responsible for not doing so.