Is Landlord Licensing A Rip-Off?

Landlord licensing schemes are becoming increasingly common, especially in London where rental housing is very common. Nottingham landlords are faced with a new scheme that starts in August whilst Luton council is one of many looking closely at the idea. Local housing chiefs say that introducing landlord licensing helps them to crack down on rogue landlords, but critics believe licensing schemes are simply a money-making endeavour.

How do Landlord Licensing Schemes Work?

When a selective licensing scheme is introduced, landlords must pay several hundred pounds to register their properties with the local authority. The landlord and their properties are then inspected to make sure they are a ‘fit and proper person’ and the properties are safe for tenants. If problems are discovered, landlords face hefty fines.

Not all landlords are targeted. In some areas, it’s only HMO landlords who must apply for a landlord licence. Some local authorities only target landlords with properties in certain areas.

No two landlord licensing schemes are the same as councils are free to make them work to suit their own objectives, but a landlord licence typically lasts up to five years.

A separate licence is needed for each property a landlord owns.

Generating Money for Councils

Selective licensing schemes are a nice little earner for cash-strapped councils. Nottingham council is expected to earn up to £23 million once it’s scheme comes into effect. That’s a lot of extra cash to spend on services impacted by government cuts.

Critics say this money-making scheme does nothing to deter rogue landlords, who will continue to operate under the radar.