Landlords need to know about an important government rule change that quietly came into force late last year.
Landlords have been warned to keep a close eye out for any new regulations introduced by their local council.
The advice comes after new rules making it easier for local councils to introduce selective licensing schemes quietly came into force in December.
Due to the timing of the changes – just two days before Christmas – the move largely flew under the radar.
However, many in the sector think the change could have significant implications.
Previously, councils had to get the Housing Secretary’s approval before introducing selective licensing schemes. This proviso no longer applies, meaning councils can act far more quickly.
In a selective licensing area all buy-to-let properties require a licence.
The National Residential Landlords Association believes some councils could now “blanket entire towns with unnecessary and costly schemes”.
It remains to be seen if this will be the case. But now, more than ever, there’s no room for complacency if you have a buy-to-let.
As you’ll see from the case study below, ignorance is no excuse in the eyes of the law. Overlooking an important rule change can cost you dearly.
Case study
A landlord faced a London property tribunal last month for failing to apply for an HMO licence for his three-bed rental.
Landlord Tope Osazee said he was unaware that the council had expanded its licensing criteria in early 2021. As a result, he did not know that his three-bed flat qualified as an HMO under the new definition.
Osazee said the council should have notified him of the rule changes at the time. He also pointed out that when he realised his mistake (some 20 months later), he secured an HMO licence quickly.
The tribunal, however, was not swayed, stating that it was a landlord’s responsibility to know the current regulations.
It ordered him to repay more than £20,000 in rent to three ex-tenants plus a fine. Yes, you read that right – £20,000.
Get expert support
In a changing regulatory landscape, it can be challenging for landlords to stay up to date with every aspect of lettings law.
That’s where a great local letting agent can help. Whether it’s the government making major changes through the Renters’ Rights Bill or your local authority updating or introducing licensing schemes, a reputable agent will keep you informed.
Contact us today to learn about our property management services.
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