Nottingham Council gives mandatory landlord licensing a green light

Mandatory landlord licensing slated for 2018

Nottingham City council first mooted their idea of mandatory landlord licensing in 2016. Following a consultation period, the plan has been voted on, with the council unanimous in its decision to carry it forwards.

The conditions of the licence will require landlords to achieve certain standards of management and maintenance.

These include, whether the proposed licence holder is:

• A ‘fit and proper person’ to offer private rented accommodation
• The most appropriate person to hold the licence
• Competent to be involved in the management of the property

As well as ensuring that management arrangements for each property are satisfactory. There are more details about the licence criteria below.

It’s now with the Secretary of State for approval. It’s excepted that the plan with it being introduced in April 2018.

The council has approved the scheme, known as Selective Licensing, which makes up part of the council’s powers to grant different types of property licences under the Housing act 2004.

The proposed cost per property for landlords is £600, with a discounted rate for accredited landlords of £400. This will cover a period of five years. The council’s documentation says that the licence fee needs to be paid upon application, by credit or debit card.

Other than the discount for accredited landlords, fees will be standard whether landlords are applying for multiple licences or for smaller, low rent properties.

Who will need to apply

The good news for landlords with student property is that your properties with HMO licences are already covered. However, the city council will require you to apply for licences for any properties you have that fall outside these regulations.

For instance, single-occupancy flats, and properties with two propel sharing.

Landlords must hold separate licences for each property that meets the licensing criteria. The licences are not transferable, so if you are planning to sell your rental property will need to apply for their own licence.

If you are thinking of not applying, the Nottingham City Council has made it clear that not doing so could lead to a fine of up to £20,000.

Proposed criteria for gaining a licence

Many of the conditions of the licence are already legal requirements under the Housing act 2004.

For instance, having up-to-date gas and electrical appliance safety documents, as well as ensuring fire and smoke alarms and carbon monoxide detectors are installed and regularly inspected.

However, the licence will need landlords to show that they are able to meet standards including how the property is managed, relationships with tenants and tackling anti-social behaviour.
Interestingly, the proposals include the requirement that landlords undertake training within 12 months of the licence being granted.

This includes taking DASH training or completing accreditation training with the National Landlords Association (NLA)  or Residential Landlords Association (RLA). With a £200 reduction in the licence fee per house, it might be wise to do the accreditation before the Selective Licensing goes live in Spring 2018.

A full list of the proposed criteria is given in the council’s Executive Board Public Document Pack.

The application process

Alongside the licence payment, landlords will be expected to provide the following:

• Electrical safety certificate
• Clearly labelled plans of property
• Energy Performance Certificate
• Gas Safety Certificate (if applicable)
• Fire Alarm test certificate (if fire detection system has an alarm panel)
• Emergency lighting certificate (if used in property)
• Building Control Certificate

You are also expected to inform other stakeholders, such as property managers and other people included in the Mortgage agreement.

The council has provided a flow chart of how each application is expected to progress:

Will there be changes to the regulations?

The new Selective Licensing is still a proposal.

As part of its announcement that it has approved the new scheme, the council announced a further 13% reduction in the fee for accredited landlords.

The city had already decided to reduce the area where the licence will take effect. Areas removed from the scheme are Wollaton, Rise Park and Clifton South.    However, the large concentration of student rental properties in parts of Nottingham such as Lenton, Arboretum and Beeston mean that these areas are still within the licensing zone. This means that landlords with student accommodation will still need to bear the regulations in mind.

The caveat of course remains that the vast majority of student accommodation already falls within the realms of HMO licensing for the city and will be exempt from this new scheme.

Nottingham City Council has also recent announced its intentions to enforce new civil penalties, which came into force with the 2016 amendments to the housing act.

More information

• http://www.nottinghamcity.gov.uk/qualityhousingforall
• http://www.nottinghamcity.gov.uk/housing/private-sector-housing/selective-licensing
• http://committee.nottinghamcity.gov.uk/documents/g5771/Public%20reports%20pack%2022nd-Nov-2016%2014.00%20Executive%20Board.pdf?T=10
• http://committee.nottinghamcity.gov.uk/documents/s59485/Proposal%20for%20a%20Scheme%20of%20Selective%20Licensing%20for%20Privately%20Rented.pdf

If you are unsure or need advice about the new mandatory landlord licensing, our local team are happy to offer help and advice to landlords with student properties. This includes ensuring your properties meet the requirements of the local regulatory environment. Contact the Nottingham branch, to speak to one of our local student property experts.