Property industry slams licensing rule change for councils
The decision that councils will no longer require government permission for selective licensing schemes of any size has not gone down well within the property industry.

The property industry has reacted badly to the Government’s new ‘indiscriminate’ selective licensing rules which will allow councils free rein over the implementation of schemes and many fear it could be used as a means of generating extra revenue by hard-pressed councils.
Those same budgetary issues mean there are also questions over who will enforce the schemes. Others in the lettings industry have voiced concerns over duplication with the new landlords’ database.
The private rented sector needs less selective licensing not more.”

Timothy Douglas, Head of Policy and Campaigns at Propertymark, said: “The private rented sector needs less selective licensing not more with the additional costs and duplication of rules that it brings.
“To this end, there are enough laws covering high standards for rented property, but it’s the lack of capacity of local authorities to actively inspect property and enforce these rules that is the main issue. Licensing means councils spend all their time administering schemes, rather than enforcing against rogue, criminal landlords.
“The Renters’ Rights Bill offers an opportunity to phase out licensing schemes, provide councils with the resources they need and endorse professional letting agents and landlords alongside the introduction of the Decent Homes Standard and Private Rented Sector Database.
“However, it would seem that the UK Government is failing to recognise the benefits of doing this and not providing local authorities with the much-needed investment they need to enforce the wide range of legislation that already exists.”
Selective licensing should be a targeted tool that is used by local authorities to tackle the worst landlords.”

Ian Fletcher, Director of Policy at the British Property Federation, said: “Selective licensing should be a targeted tool that is used by local authorities to tackle the worst landlords operating the worst standards. Unfortunately, at present it is too much of a scattergun that catches the best landlords as well as the worst.
“Through its loosening of policy today, good landlords will fear that the Government has made such schemes even more indiscriminate. We would urge the Government to think more about how to reduce the bureaucracy of such schemes, simplify processes, and grant exemptions where there is no need to license.
We could see a raft of new schemes being implemented over the next few years.”

“Care will need to be taken to ensure that local schemes support the supply of new high-quality rented homes.”
And Isobel Thomson, chief executive of Safeagent, says: “When combined with the budgetary pressure on local government and the significant income-raising potential, we could see a raft of new schemes being implemented over the next few years.”




