Consultations on new Property Licensing schemes launched.

Licensing is, of course, not a new initiative within the Private Rented Sector. The Housing Act 2004 (the Act) introduced a range of measures designed to address to improve the management of HMOs. The Act introduced mandatory licensing of all HMOs which are occupied by five or more persons forming two or more households.
It also introduced two types of discretionary licensing. These are additional licensing schemes, where a council can impose a licence on other HMOs in its area which are not subject to mandatory licensing, but where the council considers that poor management of the properties is causing problems either for the occupants or the general public, and selective licensing to cover all privately rented property in areas which suffer or are likely to suffer from low housing demand and also to those that suffer from significant and persistent anti-social behaviour. Other measures include management orders and rent repayment orders.

On the day of the King’s Speech 3 Local Authorities announced Consultations, with another launching a Consultation on the 22nd July 2024. Not a coincidence that Wandsworth, Enfield and Broughton and Kersal, and Gateshead Councils, but rather planned consultations which are required by law to consult with people, businesses and organisations who are likely to be affected by the proposals and consider any views fully, before making a decision.

A new Additional Licensing Scheme for smaller Houses in Multiple Occupation (HMOs) is being introduced across Brighton & Hove from 1 July. The city-wide scheme is for HMOs of 2 or more storeys with 3 or 4 occupiers. Licence applications for property owners and managing agents for those HMOs will open from 1 July. A Selective Licensing Scheme for certain private rented homes in the Kemptown, Moulsecoomb & Bevendean, Queens Park and Whitehawk & Marina wards is also being introduced in September.

It is likely that even though the Renters’ Rights Bill will introduce a Property Database for landlords, Selective Licensing will not be abolished, but it is likely that more local authorities will be set on introducing more licensable areas.