Leicester City Council’s Selective Licensing scheme is designed to improve standards in wards where over 8500 rental properties are situated. Unfortunately for the majority of good landlords, the conditions adopted by some landlords mean we all have to pay for this license, and it’s a steep price.
The License Fee Has Already Gone Up
You’ll now have to fork out £1290 for a five-year license. As I mentioned in a recent post this is already the highest cost license I am aware of in the country (willing to be proven wrong on that…but the point stands that it’s an unwelcome burden for already hard-pressed landlords facing interest rate rises)
The Worse News Is That Fines Are Going To Be Steep
Our contacts at LCC inform us that the slow pace of take up of the scheme – only 2800 licenses issued for the 8500+ affected properties – mean that they feel they have no choice but to apply heavy sanctions.
The first-offence fine for any landlord without a Selective License when the Council decide to prosecute will be £5000. That would wipe out the profit of a year or two for many landlords.
Unfortunately, the problems don’t stop there:
- Note that the figure above is just a first-offence starting rate
- A full Civil Penalty fine for a serious offence is capped at £30,000…per offence
- Multiple property landlords could therefore face several times £30,000 hits
- A conviction at Magistrate’s Court is punishable by an unlimited fine.
- Operating an unlicensed property may also result in tenants being able to apply for a Rent Repayment Order (RRO)
- Under a RRO a landlord may be ordered to repay up to 12 months rent to the tenants
- A landlord without a Selective License does not have the required documentation to bring a successful Section 21 Notice to Court
All in all, this is serious.
Is It All Just Idle Threats From The Council?
‘Fraid not. Our close contacts at the Council confirm that they have just been building evidence and biding their time. Things are about to get heavy: examples are going to be made of landlords (and errant agents too) in the near future.
Here’s Where To Check To See If You Are Affected
Use this link to reach the Council’s interactive map. But above all, don’t delay.
Is There Help Available to Get My License?
Read my previous blog on the subject to access all the help we think you need:
- A FREE Checklist that walks you through the process of applying for your own license
- A FREE consultation with our expert team to discuss issues you may have with all the documents
- Our paid-for service to get your Application handled for you
Our last blog has all the information about Northwood Leicester’s Licensing “Sherpas”: we do the heavy lifting on Selective Licensing so you don’t have to. For just £299 plus VAT we’ll get your license application all sorted, including the mandatory home inspection visits, which will also help you get all that onerous documentation put right once and for all. Here’s a special deal too: if you bring your property to us for Full Management for a two year contract so that you don’t have to worry about compliance ever again, we’ll even cut the license application fee by half.
Time’s Up For Landlords Who Have Tried to Avoid Selective Licensing
Honestly, no-one knows better than me how much of a burden this is all becoming for landlords. My own properties have been affected and yet they represented no issue whatsoever for my perfectly happy tenants – naturally the properties sailed through the Selective Licensing requirements leaving me with an undeniable sense of waste, both time and money.
But bleating about “why” isn’t going to make it go away. What would be far worse would be having to cope with fines, Rent Repayment Orders, and the loss of control over one’s own property if you could not issue a Section 21 Notice.
Please Don’t Let This Happen To You.
Contact Northwood Leicester now: Gosia is ready to guide you through the Selective Licensing regime in Leicester and to help you find solutions.
And here’s our direct WhatsApp number for landlords who want to chat through the situation on your own properties. We’re happy to help, any time: WhatsApp dedicated support line: 07594 476403
To make your access to expert advice super-easy, simply scan this QR code to connect direct to us via WhatsApp – help for your issues is at hand:
