Don’t be fooled by scheme’s generous time frame, landlords warned

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Leicester’s new selective licensing scheme has been criticised for confusing landlords by offering them an 18-month lead-in time.

The five-year scheme starts on Monday (10^th October) when they have up to 18 months to apply for a licence before the council issues a £200 penalty fee – however, tenants could pursue landlords for Rent Repayment Orders from 11^th October.

Landlord group EMPO reckons it’s a perverse situation and that a lack of sufficiently qualified staff could be behind it. “The council have said they won’t pursue landlords during that time, but if you didn’t apply, your tenant could hit you with a Rent Repayment Order,” business development manager Giles Inman tells LandlordZONE. 

Civil penalty

“It’s also interesting that they are only offering a fine instead of a civil penalty, which will be music to the ears of the criminal landlord fraternity.”

David Smith (right), property solicitor at JMW, agrees that the council’s position isn’t helpful. “They should be much clearer, by saying if you don’t apply you will be committing an offence,” he tells LandlordZONE. “By giving landlords a grace period where they won’t be prosecuted, that doesn’t mean landlords don’t have an obligation. My advice would be to make an application.”

Small HMOs

The licensing scheme will impact 8,853 properties in the wards of Stoneygate (East Cluster), Westcotes, Fosse, Braunstone Park & Rowley Fields (West Cluster) and Saffron (South Cluster). The council is also including small HMOs pending the implementation of its proposed additional licensing scheme.

The £1,090 fee – the highest in the Midlands – will have a huge impact on increasing rents and homelessness in Leicester, adds Inman. “Thrown into the pot is the worst cost of living crisis in living memory, with sky high energy prices. This is not the time to be heaping more costs on landlords and tenants.”

LandlordZONE has approached Leicester Council for a comment.

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