Selective Licencing

Selective Licensing
A Strategic Approach to Tackling Anti Social Behaviour and Low Housing Demand
Introduction
The Selective Licensing Team appointed on 27th November 2006
and is comprised Joanne Thompson the Selective Licensing Officer and Claire Riley the Selective Licensing Support Officer.  The team can be contacted by e-mail at selectivelicensing@sedgefield.gov.uk or by telephone on 01388 816166 Extension 4493
Information packs, leaflets and questionnaires have been produced for the consultation process and members of the selective licensing team are attending a number of public meetings including Landlords Associations, Residents Associations, the Residents Federation and the Crime and Disorder Reduction Partnership, giving information on the scheme and two consultation events are being planned for February 2007 at Dean Bank and Chilton.
Information packs and questionnaires will be sent to local residents and landlords enclosing the consultation questionnaire.

 


Why Introduce Selective Licensing?
Poor housing management and low standards in the sector can lead to the failure of a local housing market.
People leave the area, house prices fall, speculative landlords move in and the local community becomes weaker.
Low demand and antisocial behaviour can result in unsettled communities, along with other social and economic problems that can undermine efforts to regenerate an area.
Background
Part 3 of the housing act 2004 provides that a local housing authority (LHA) may declare a licensing scheme for privately rented accommodation in its area providing the following conditions are met: -
Considers all other courses of action first.
Is a targeted approach in designated areas suffering low demand or ASB.
Is consistent with and contributes to overall national, regional and local policies and strategies.
Assists landlords in taking greater responsibility in responding to problems.
Engages in consultation with landlords, tenants and residents associations.


Declaring a Selective Licensing Area
Applications to declare a selective licensing area: -
An application is made to the department for communities and local government for approval by the secretary of state.
The application will include a detailed description of the proposed area, number and types of properties affected and a map of the area.
Details of the current position regarding tackling low demand and or anti-social behaviour and why selective licensing will help.
Details and analysis of all consultation carried out with regard to implementation of a selective licensing scheme.

Publication of Scheme
Once confirmed by the secretary of state the LHA must publish notices within the designated area within seven days stating:-.
Designation made.
Nature of how scheme was approved.
Date scheme comes into force.
Any other prescribed information.
The scheme will be publicised in a variety of ways: -.
Notices posted in designated areas, local municipal buildings, and in local press.
Via LHA’S website.
By letter to landlord’s forums, residents associations etc.
Once declared the scheme remains in force for a maximum of 5 years but may be revoked prior to that time by the LHA by publicising as outlined above.
Requirements of Selective Licensing
Most private landlords or management companies will be required to obtain a licence in order to let or manage residential property in an area where a licensing scheme exists.
Tenancies with registered social landlords or local housing authorities are exempt.
Other lettings excluded by regulations are holiday lets, long lease tenancies (21 years), business tenancies or those where the LHA has taken action to close the property down.
Houses in multiple occupation (HMO’S) will be licensed separately and will not fall within the selective licensing scheme.
Penalties
Letting or managing a house, which ought to be licensed without a reasonable excuse for doing so, is a criminal offence, subject to a maximum fine of £20,000.
If there were an outstanding application for a licence or a temporary exemption notice the fine would not apply.
The local housing authority may also apply to the residential property tribunal to recover any housing benefit which has been paid to a landlord on an unlicensed property that was required to be licensed.

Licence Conditions
A part 3 licence requires the holder to meet the following licence conditions: -.
The landlord or manager is deemed a fit and proper person.
Will take reasonable steps to deal with ASB.
Will provide a gas safety certificate to the LHA annually where applicable.
Will keep electrical appliances & furnishings supplied within the tenancy in a safe condition.
Keep smoke alarms in good working order.
Supply tenants with written terms of occupation.
Demand references from prospective tenants.
Other terms deemed necessary by LHA.
Breach of Licensing Conditions
If the licence holder commits an offence or is in breach of the licence conditions he may be fined up to a maximum of £5,000 for each offence.
Non-compliance with the licence conditions may also allow the local housing association to revoke the licence.
The LHA may also apply for an interim management order in respect of a licensable property that remains unlicensed where the LHA considers that it is unable to grant a licence.
IMO lasts for a period of twelve months and then a final management order must be applied for if the LHA still considers that it is unable to grant a licence.
The landlord may apply to the residential property tribunal to appeal against the LHA’s decisions.
Benefits of SL to Communities
Increasing housing demand and ASB will improve problem areas making them safer and more desirable places to live.
Will reduce environmental costs such as street cleansing and tackling fly tipping.
Will help to protect vulnerable groups who are often the tenants of privately rented accommodation which is poorly managed and maintained.
Will make it easier to involve all landlords in wider strategies such as crime reduction initiatives.
Benefits of SL to Landlords
Provide support for landlords and a platform for discussion, problem solving (including ASB) and sharing of good practice via a private landlord’s forum / accreditation scheme support
Assist the landlord in obtaining references by setting up referencing scheme
Increased satisfaction within neighbourhoods with the private rented sector
Improved rental income, less voids and reduced tenant turnover
Poorly performing landlords will be given support & training
Where landlords are unwilling or unable to meet the required criteria LHA’S can step in to manage properties
Provides robust baseline information on local housing markets