A high profile lettings agent has written to his local council seeking information about an Additional Licensing scheme which has expired – without any guidance from the authority about what happens next.
Kristjan Byfield, who runs Base property specialists in East London, is frustrated because his local Hackney council’s scheme applying to HMOs expired at the end of September.
Byfield says there has been no indication whether a new scheme is taking over, and if so when it begins; his concern is heightened because failure for agents and/or landlords to abide with such a licensing scheme could ultimately lead to a fine of up to £30,000.
In communications with the council, Byfield says: “There is no advice on what Landlords and their Letting Agents are expected to do going forwards. Has another scheme been implemented? Will it? If so, when? Are pro rata rebates available to landlords granted a five year license but have not had the full term? There are huge implications to Landlords & Letting Agents alike and Hackney have a duty to be clear, transparent and give plenty of due notice.”
He asks the council to answer his questions in detail and let him know what communications about the scheme have been put to other agents and landlords, and whether it is reasonable to have such little notice if there is in fact a new scheme taking over.
The council has replied acknowledging that some details on its website are incorrect but warning that any agent or landlord known to have been contravening the licensing system prior to the end of last month still risks prosecution.
It tells Byfield: “It is important to note that, despite the end of the current Hackney Selective Licensing & Additional HMO Licensing schemes, this does not preclude property landlords/agents from their responsibilities of taking adequate measures to improve the condition of their property(s) in respect of health, safety and wellbeing of their tenants. The Private Sector Housing (PSH) Compliance Team will continue to respond to reported cases of suspected unlicensed Mandatory HMOs.”
And it concludes: “There will be communication through official channels regarding the next steps and the continuation plan for licencing in the London Borough of Hackney (if any) in due course. We appreciate your patience.”
Local government licensing has been a vexed subject for some years, with significant variations from council to council, and a general belief amongst many in the industry that the schemes are introduced for revenue raising purposes rather than to improve enforcement and quality of the private rental sector.
Councils typically insist such schemes help reduce anti-social behaviour in the affected areas, although have rarely produced evidence to support the claims.
Meanwhile some industry groups – notably the National Residential Landlords Association – have been sceptical of licensing and have suggested that more resources to enforcement bodies such as Trading Standards may reduce the need for licensing.
