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The new Labour government recently announced that from 23 December 2024, local housing authorities in England do not need to obtain confirmation from the Secretary of State if they wish to implement a selective licensing scheme - of any size.
Local authorities are increasingly adopting selective licensing schemes to improve standards in the private rented sector. These schemes require landlords to obtain licenses and meet certain conditions, with penalties for non-compliance.
Research from Yuno showed that the introduction of selective licence schemes had little impact on improving standards, although local housing officers report that it can help improve enforcement ‘on the ground’ especially as they can impose civil penalties.
This is quite a big change to the current rules. Although the local housing authorities must consult for at least 10 weeks on the proposal, Yuno is aware that the reach and effectiveness of these consultations can vary dramatically. In some cases, this means they can be implemented without the landlord's knowledge unless they are proactively keeping up with lettings legalities or their rental property is being managed by a qualified agent.
Paul Conway, CEO of Yuno, explained that the implications for landlords could be incredibly negative – and costly. “This will increase the chances of all landlords & agents being caught out by widening licensing in an area, especially if it’s not well publicised. It could also increase their ongoing costs due to the licence fee charged.” At Yuno, we’ve seen fees for new applications in Leeds as high as £1,225 versus others such as Ashfield which charge £350.
Not licensing a property correctly could currently lead to fines of up to £30,000 per offence.
However, Paul goes on to say that for qualified agents, this is a good opportunity to talk to self-managing landlords or landlords that currently use their let-only service to see if they would prefer to move to full management. Supporting landlords to identify and fulfil licensing requirements quickly and efficiently, be it a new licensing scheme or the Renters’ Rights Bill being implemented in 2025.
Which areas are affected?
According to data from Yuno, there are 37 licensing schemes across England that are currently under consultation or could be coming soon to a council by which your properties will be affected by, some key schemes include:-
London will see the most new licence schemes, including:-
This is just a selection of licence schemes/consultations - so landlords and agents need to be alerted to the fact they may well be implemented shortly and check if their area is going to be affected.
To find out about all the areas and licensing schemes either being introduced or under consultation, do get in touch with Yuno. In addition to assessing your existing portfolio for licensing, Yuno can also support you with planning, fire safety and energy issues, helping ease the pressure of complex letting compliance for landlords and agents, saving time and money.
For more information, contact Yuno at paul@goyuno.com
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