From today (23rd December), local councils in England have the power to introduce selective licensing schemes without needing approval from the Secretary of State.
While the new rules grant councils greater autonomy, they must still complete a 10-week public consultation before launching any scheme and provide regular updates to the Ministry of Housing, Communities and Local Government.
The National Residential Landlords Association (NRLA) and other industry bodies have criticised the changes.
The NRLA argues the rules “make no sense” and could conflict with the national landlord database proposed in the Renters’ Rights Bill.
Propertymark has also raised concerns, stating that the private rented sector “needs less selective licensing, not more.”
Phil Turtle, director at Landlord Licensing & Defence, strongly criticised the move, calling it a revenue-raising tactic rather than a genuine effort to improve housing standards.
“From today, any council can launch any selective licensing scheme they want with no need to get approval from the Secretary of State,” said Turtle. “All they have to do is one of their meaningless and rigged ‘consultations’ with almost zero input from landlords or tenants. These consultations are designed to get the answers local authorities need to push ahead with their plans, regardless of stakeholder opinions.”
Turtle warned that the changes could lead to a proliferation of licensing schemes, with landlords facing inconsistent regulations across the country. “We are now on the starting blocks for every council to require every rental property to be licensed under what will become 340-odd councils with 300-odd different licensing schemes,” he said.
He also criticised the punitive nature of the rules, noting that breaches of selective licence conditions are criminal offences carrying unlimited fines or civil penalties of up to £30,000.
Under the Renters’ Rights Bill, this figure will rise to £40,000, with a minimum fine of £7,000 for certain offences.
Turtle argued the changes amount to a financial burden on landlords and tenants alike. “Selective licensing schemes in England typically cost around £1,000 (£200 per year), compared to the far better scheme in Jersey, which costs just £30 per year.
“This is nothing less than the government giving away control to cash-strapped local authorities, enabling them to implement out-of-control money-raising schemes.”
Industry groups warn that the new rules could discourage investment in the private rented sector and drive up costs for tenants as landlords pass on fees and fines.
