Landlords need to know about an important government rule change that quietly came into force late last year.
Landlords are being urged to stay vigilant as new regulations affecting rental properties quietly came into force late last year. These changes make it easier for local councils to introduce selective licensing schemes, significantly impacting buy-to-let property owners.
Key Changes in Selective Licensing
Previously, councils required approval from the Housing Secretary before implementing selective licensing schemes. However, as of December—just two days before Christmas—this requirement was removed. Now, local authorities can introduce these schemes more swiftly and independently.
Selective licensing means that all buy-to-let properties within a designated area must have a licence. The National Residential Landlords Association has raised concerns that some councils may use this to impose blanket licensing across entire towns, adding unnecessary costs for landlords.
Why This Matters for Landlords
Failing to comply with licensing regulations can result in severe financial penalties. As the case study below highlights, ignorance of the law is not a valid defense.
Case Study: A Costly Oversight
Last month, landlord Tope Osazee appeared before a London property tribunal for failing to obtain an HMO (House in Multiple Occupation) licence for his three-bedroom rental property.
Osazee was unaware that his local council had expanded licensing criteria in early 2021, meaning his property now qualified as an HMO. He argued that the council should have informed him of the changes. However, despite securing an HMO licence as soon as he realized the mistake—20 months later—the tribunal ruled against him.
The outcome? Osazee was ordered to repay over £20,000 in rent to former tenants, plus a fine. This case underscores the importance of landlords staying informed about regulatory changes.
Stay Compliant with Expert Support
The lettings landscape is constantly evolving, from major government reforms like the Renters’ Rights Bill to local licensing updates. Staying compliant can be challenging, but working with a knowledgeable letting agent can make all the difference.
A reputable letting agent will ensure you’re always up to date with the latest legal requirements, helping you avoid costly mistakes.
Contact us today to learn more about our property management services and how we can help you navigate these changes smoothly.
