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chancellor Rachel Reeves Admitted to “unintentional mistake” Not obtaining the required “selective” rental license to its south London home when she moved into number 11 Downing Street.
Ms Reeves apologized for the error and confirmed she has now applied for a licence.
here are more rules potential consequences Not having the correct license.
What is selective licensing?
local authority England And wales Has the power to introduce a licensing scheme covering all privately rented properties in a certain area.
It is designed to protect tenants from landlords renting poorly maintained properties, but it may also be introduced due to concerns about persistent anti-social behavior problems in rental homes.
If a private landlord wishes to rent out a property in that specified area, they must apply to obtain a license.
Local authorities should contact the people of the area to make them aware about the plan to launch this scheme and they should display information about it on their website.
But it is the landlord’s responsibility to apply for a license if they need one, even if a letting agent has advised them to manage their property.
Do the rules differ from place to place?
Yes, each local authority will have different rules and requirements for privately rented homes in the area.
According to analysis by National Housing landlords Association (NRLA), there are 47 local authorities which operate selective licensing schemes England,
Fees to obtain a license will also vary, according to research from Direct Line, although the national average is around £700 per property, and each plan can last for up to five years.
london city where Rachel Reeves She was giving her house on rent. southwarkA selective licensing system is in place for specified areas throughout the borough.
This means that it has an enforcement policy for people who need a license and don’t get one.
What happens if you don’t get a license?
If a property does not have the correct license, the landlord and letting agent can be fined or prosecuted.
This can lead to an unlimited fine or a financial penalty of up to £30,000 per offence.
Landlords may face a rent repayment order against them – meaning they will have to repay rent collected during the period the property was unlicensed, up to a year.
Does selective licensing improve living standards?
Chris Norris, NRLA chief policy officer, said: “The first priority for any landlord is to ensure that the properties they rent are safe and meet all the required standards.
“While selective licensing can play a role in ensuring standards, it should not be seen as a panacea.
“NRLA data shows that there is no clear relationship between a council having a licensing scheme and improved levels of enforcement against rogue and criminal landlords.”
“It does not appear that licensing schemes are an effective way of promoting high-quality housing in the private rented sector,” said Timothy Douglas, head of policy and campaigns at industry group Propertymark.
“This is because most schemes fail because they do not have sufficient resources to carry out the necessary enforcement activity,” he said.
He said running the schemes could often “cost more than raising fees”.