A licensing scheme for Landlords in Nottingham will be introduced on 1st August 2018, with the aim to ‘raise the standards in the privately rented sector, and to ensure that all tenants living in them are able to enjoy a safe, comfortable and well managed home’.
This means that if you are a landlord that owns a property in the affected areas, that you will need a licence.
This could be a big blow for Landlords who already keep privately rented properties at a high standard.
Of course, this brings with it many questions and we at Belvoir are here to offer advice, support and guidance when it comes to Nottingham’s selective licensing scheme.
Do I need to apply for a licence?
If the property you are privately renting out is situated in the affected areas, then you will need to apply for a licence. All applications need to be carried out on-line from 1st July 2018 and completed applications need to be submitted to the Council by 1st August 2018.
If you already have a HMO licence, you do not need to apply for a licence.
Is my property covered under the licensing scheme?
The scheme affects designated areas within the city. To view the affected areas, you can look at the map that outlines where the scheme is being implemented here. it will provide clarity on any properties that are located on the fringes of the areas outlined.
What does my property need to have in order to be compliant?
The council has set out a list of things that a landlord must have in order to be compliant with the new regulations.
These include things such as ensuring smoke alarms are fitted on each floor, that the exterior of a property is maintained in a reasonable decorative order and that there is a burglar alarm and codes and instruction have been given to tenants- the full list can be found in our article here.
All Belvoir managed properties comply with all the required standards set out by the council.
What do I need to do to become compliant and how do I access the discounted rate?
There are no discounted rates for landlords that have multiple properties in the affected areas and the full fee will apply for each individual property. However, if you are DASH or Unipol accredited, there is a reduce fee of £480 as opposed to the full £780 fee.
Please note, however, that costs may apply to get this accreditation, and depending on the amount of work you may have to do to your property before being accredited, could end up costing more than the difference you would pay to get the licence without an accreditation.
Is this bad news for the future of my rental income?
There is no two ways about it, in the short term the answer is YES there is an increase in hassle and slight reduction initially in return on investment BUT selective licensing will have a positive impact on rental returns that will far outweigh its cost, this has been substantiated by the cities that have already activated the provisions for licensing and evidence by the market values that have followed.
On average the price of rental property in Nottingham is £500per calendar month and we are used to seeing a £25per month increase year on year as standard inflation. With the introduction of the selective licensing this is likely to increase to figure of £50-£75per property per month which will effectively pay for the licence in a year- 14 months and actually have a positive effect on rental return for each subsequent year
So, despite the initial pinch point which is undeniable – actually, selective licencing will have an increase in the level of return on investment over and above normal inflation.
Are you a landlord that self manages your property and is looking for either advice or assistance?
Get in touch with Belvoir Nottingham Central, we have had numerous meetings with the council regarding this topic and have a comprehensive understanding of how the selective licensing scheme works and what it means to landlords.
We are able to cut through the jargon and guide you through the licensing requirements with clear and simple instructions and can also offer advice and assistance where necessary.
Feel free to contact Belvoir’s director Mr Lloyd Rumbold personally for any queries you may have on 0115 985 9259
