Croydon Council has postponed its additional and selective landlord licensing schemes just before they were due to launch.

The schemes were set to start today (1 September) but landlords and managing agents are now unable to submit licence applications until later this month, according to London Property Licensing.

It reports that last month the authority had concerns it would not be ready to implement its new additional scheme and a selective scheme covering 14 council wards on time. As a result, council officers explored options to delay implementation and decided to reschedule the start dates to 25 September. The council has updated its website to confirm that licence applications will not be accepted until that date and warns against attempting to apply before then. It is believed both schemes will expire on the original date of 31 August 2031.

Power

Whether a local authority has the legal power to amend the commencement date of a licensing designation after it has been made is an issue that could ultimately only be determined by a court or tribunal, explains Richard Tacagni, MD at London Property Licensing.

The difficulty is that the legislation lacks any provision to vary a scheme designation. The only power in the Housing Act 2004 is to revoke a scheme designation.

He adds that the situation in Croydon highlights the risk of implementing a licensing scheme before all the building blocks are in place. “It risks causing confusion and uncertainty,” says Tacagni.

Compliant

“To remain compliant, landlords and managing agents must submit licence applications by the date the licensing scheme starts. For this reason, I recommend all councils open the application process three months earlier. In this case, landlords are unable to apply before the licensing schemes start.

“With civil financial penalties recently increased up to £40,000 and Rent Repayment Orders covering up to two years rent, it is vital that councils provide clear, simple and timely communication to support regulatory compliance.”

LandlordZONE has contacted Croydon Council for comment.

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