Selective Licensing is a new licensing scheme being introduced by Nottingham City Council to ensure that rental properties within the Nottingham City area meet certain safety and quality standards.
Landlords will be required to demonstrate that their properties meet certain requirements in order to be granted a licence.
A licence will last up to five years and a separate licence will be required for each private rented property – not each landlord. Landlords and property managers (person receiving the rent) need to apply for a licence, not tenants.
It’s estimated that the scheme will cover 30,000 privately rented homes across the city. However, it doesn’t cover all areas of the city. Areas affected include: Arboretum, Bestwood, Bulwell, Bulwell Forest, Basford, Berridge, Bridge, Clifton North, Clifton South, Dales, Dunkirk and Lenton, Leen Valley, Mapperley, Radford and Park, Sherwood, St Ann’s, Wollaton East and Lenton Abbey.
You can find out if your property if affected using the My Property tool on the Nottingham City Council’s website.
It’s also worth noting that although Nottingham City Council is currently the only council implementing the scheme, it is expected that other districts in Nottinghamshire may also introduce similar schemes. Gedling Borough Council is currently considering putting something similar in place – find out more here.
The scheme will come into force on 1 August 2018 and Nottingham City Council are aiming to begin accepting licence applications from 1 July 2018, so landlords have little time to get things in order before the scheme comes into force.
The cost for a standard licence is £780. However, landlords also need to take into consideration any associated costs that they may incur in ensuring that their properties comply with the licence requirements. For example, landlords will be required to demonstrate that they have attended relevant training within the last three years.
If a landlord is required to have a licence and does not obtain one, they could be fined up to £20,000. In addition, the council can also issue penalty fines of up to £30,000 for offences under the Housing Act 2004 if properties do not meet the required standards.
Details and guidance about how to apply for a licence and the full requirements are available on the Nottingham City Council website.
If you are a landlord who is likely to be affected by the Selective Licensing scheme and need advice on the associated financial implications, please contact us.