Selective Licensing is a process which was brought in by the Housing Act 2004. The process applies to certain areas throughout the UK and applies to privately rented properties. The process has most recently been applied to certain areas in Leicester City.
What is the purpose of Selective Licensing?
Selective Licensing requires every private landlord within the areas to which it applies to hold a licence allowing them to rent a private residential property to tenants. The licence is basically required to ensure that landlords comply with all the legal requirements currently in place that affect privately rented residential properties. Whilst there are already some regulations in place that landlords have to follow before renting properties, some landlords have not historically complied with all of their obligations and so the licensing process has been brought in to protect tenants and ensure landlords comply with everything they are required to do.
How does the process work?
In Leicester, the selective licensing scheme applies from 10th October 2022 and will run for a period of 5 years. The process involves completing a form to be sent to the Council as well as enclosing evidence that you have complied with certain regulations. A fee is also payable to the Council when applying. The form requires you to for example, prove that you have a valid Energy Performance Certificate, Gas Safety Certificate (if applicable), Fire safety risk assessment and Tenancy Agreement in relation to the property. In addition, it asks that you ensure that there are carbon monoxide monitors at the property and fire alarms on every floor amongst many other things.
Once the form and the fee have been submitted, the Council will review the documentation to consider whether you as a landlord are appropriate to provide a licence to and may carry out a property inspection. At the moment, the process is not compulsory across England, but is only applied to specific areas.
Do I need a selective licence?
If you are a landlord of a privately rented residential property, you will require a licence if you fall within the area to which the scheme applies. The schemes are already in place in many cities such as London and Nottingham. In Leicester, the scheme is only initially being brought in to apply to certain areas of the city of Leicester. If the scheme applies to an area in which your property is, you should have received a notice from the Council informing you to apply for selective licensing. Alternatively, you can check the Leicester City Council website for an area map of which areas the scheme applies to.
If you are the landlord of a commercial property, you do not require a licence unless part of your property is for residential purposes such as a flat above a shop. If this is the case, and the flat is rented out, a selective licence is required for the flat.
What happens if I don’t have a selective licence?
If you do not have a selective licence when one is required, you could be fined by the Council and/or prosecuted at Court. If you are convicted of a crime, you may be required to pay rent back to the tenant or local authority in addition to that conviction.
If you require assistance in applying for a selective licence, we can assist with this. If you need assistance, please contact a member of our Litigation Team for assistance.
You can learn more about our Litigation Team here.
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