New licencing requirements for landlords in Newham

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Licencing of rental properties Newham could start a trend in the rental sector

Newham Landlords who rent out properties privately are the first in the country to face mandatory licensing which came into effect on the 1 January 2013.

Following a 10-week consultation on proposals to introduce a licensing scheme for all private landlords in the East London Borough, the scheme was approved by Councillors  making it a requirement for private landlords in Newham to show that they are “fit and proper persons”.

Landlords are now required to fill in an application form which allows the council to check the credit background of landlords as well as requiring them to provide proof of safety checks. Follow this link for more information from Newham Council, including a link to the form for licencing.

Newham Council ran a pilot scheme for 18 months prior to the Olympics charging £500 for a licence, or £300 for early applications.
The aim of the council is to improve the quality of private rented housing in the borough and eradicate so called ‘rogue landlords’ who do not take their obligations seriously. The discounted fee has been extended from the 1st January to the 31st January 2013 but it is unlikely to be further extended.

Newham mayor, Sir Robin Wales (above), said: “We want to ensure that private sector rented properties are well managed and meet a good standard.” He added “We also want to deal with the crime and anti-social behaviour that is sometimes associated with bad private sector rented housing,”

A national regulatory scheme to protect tenants was proposed by the previous Labour government after the Rugg Review, a reported on the private rented sector. The then government proposed plans to establish a national register of landlords, make written tenancy agreements compulsory and regulate letting and managing agents.

However, Coalition government housing minister Grant Shapps rejected the regulations as he believes the majority of England’s three million private tenants are happy with the conditions of their housing.

In 2010 he announced to landlord: “I am satisfied that the current system strikes the right balance between the rights and responsibilities of tenants and landlords.” Going on to promise “the government has no plans to create any burdensome red tape and bureaucracy.”

We would advise landlords who run their rental property as a business with the rights and responsibilities that incurs are unlikely to have any problems getting licenced by Newham or any other borough. Riley Marshall have noticed a marked increase in demand for new property in the rental sector over the last twelve months which is obviously good news for property developers, and investors. New properties are not likely to have any problems with licencing if it does come into effect more widely, but as long as your property is well maintained there is no reason you should have a problem even if it is an older building.

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