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Landlord licensing schemes being introduced by councils around the UK
2 April 2015
Croydon Council look set to implement a new landlord licensing scheme within the borough despite widespread criticism.
Under the new rules, landlords will be required to pay £750 per property in order to gain a five-year license, a fee which will be reduced to £350 if payment is made within the first three months of the scheme being introduced.
If a landlord fails to pay this, they could be subject to a prosecution, a fine of up to £20,000 and the council may even take over management of the property.
It is believed that there are over 30,000 rented homes in the Croydon borough and many fear that the cost of this licensing scheme will be passed over to tenants in the form of increased rent rates.
Croydon Council say that they aim to reduce antisocial behaviour caused by tenants and crackdown on ‘bad landlords’ as a result of the scheme.
Despite these new regulations not coming into effective until October this year, the council had to be swift in gaining cabinet approval as new laws being introduced from 1st April 2015 would have required confirmation by the Communities Secretary and likely rejection.
Croydon are not the first council to try and implement a licensing scheme within their borough as Enfield Council’s attempt to introduce a similar scheme was blocked by the High Court last December.
Contrastingly, Liverpool Council have been given the green light to introduce their licensing scheme which looks to charge landlords up to £400 per property for a five-year license. This however has faced strong opposition from the National Landlord Association who are demanding a delay to the current April implementation as they claim the current online application process would result in every landlord in Liverpool breaching the law.
Tower Hamlets Council are also looking at introducing a license scheme in seven areas within their borough in the future.