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Wednesday, January 09, 2013

Compulsory landlord licence arrives

Fortunately the compulsory landlord licence for all landlords only applies to landlords in the London Borough of Newham.  However, it could be a sign of things to come particularly amongst Labour controlled councils.  I've given my view before about the Labour Parties thinly veiled dislike of landlords and everything that they perceive them to stand for.  Other Labour controlled councils could follow Newhams lead and vote for wholesale mandatory licensing in their areas.

Newham Landlord Licence

Newhams private rented property licensing scheme was approved last June and came into force on 1st of January.  It covers an estimated 35,000 private tenancies (one in three of all the borough's households).  Landlords who fail to register could be fined up to £20,000.

The Council spokesman Newham Mayor, Robin Wales said that its' scheme is intended

‘to tackle squalor, overcrowding and illegal dwellings in the east London borough’. And it says three quarters of private tenants have been found to support the scheme.

‘This scheme shows that Newham is leading the country when it comes to tackling bad landlords who flout the law. We will never accept private sector tenants being directly exploited by landlords who force them to live in dangerous and unacceptable conditions’

‘Good landlords have nothing to fear from this scheme. For the bad ones, this a clear message they must clean up their act – or pay the price,’ Wales added

The cost to landlords

The discounted cost to landlords is £150 for 5 years providing they register before the 31st January deadline.  The non discounted rate for the landlord licence is £500.

The question

The question about the scheme is how will having a landlord licence equate to the holder being a good landlord and indeed ensure they are letting out quality accommodation?  This is a question that Newham or non of the other supporters of a basic tick box landlord licence can really answer.  Which begs the other question.  What is the point then?

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RAP said...

This is purely another burden on landlords,a tax in all but name.It does nothing to ensure the quality or standard of landlord/ property offered for rental.

Anonymous said...

Councils looking to rake in extra cash because they're hard up. Well, the landlord will charge it to the tenant who will then complain that he or she is being screwed, and round the mulberry bush we go again.
"Good" landlords will be told the usual Blairism "nothing to hide nothing to fear, so you'll be happy to pay up then".
"Three quarters of private tenants have been found to support the scheme". Well they would, wouldn't they? Until, that is, their rent goes up.

Anonymous said...

PDS Leeds
Yet another stealth tax! If they want to control bad landlords and badly managed houses why not fine any landlord who is guilty of such houses rather than grabbing their cash to bulge the councils coffers from good law abiding decent landlords who care about their properties and their tenants.
Just more money for us to pay and more for our dearly beloved councils to waste i fear!!!!!!!

Paul Barrett said...

LL should ensure that the VOA is advised of their properties' rents to ensure that the LHA rate increases.
Presently the VOA only gets a few examples from LA which are NOT representative of the market rents in a particular area.

Anonymous said...

Is this a £150 per property and/or landlord ? What are the discounts for multiple proeprties ?