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Landlord licensing enforcement postcode lottery needs updating

Richard Tacagni

A licensing expert has called for a national scheme to simplify councils’ disjointed approach to handing out justice for licensing breaches.

Following Chancellor Rachel Reeves’ high-profile blunder for failing to license her rental property in Dulwich, Richard Tacagni, MD at London Property Licensing, says this highlights the significant financial and reputational risks involved.

Local authorities all have different application processes, fees, and conditions, and must develop and publish their own housing enforcement policy. Southwark Council explained: “When we become aware of an unlicensed property, we issue a warning letter advising the landlord that they have 21 days to apply for a licence – enforcement action such as fines are reserved for those who do not apply within that time or where a property is found to be in an unsafe condition.”

Unlikely

It seems highly unlikely that Southwark will launch a criminal investigation following the public apology from Reeves’ agent for its unintended error, which provides a strong basis for a reasonable excuse defence, according to Tacagni.

A civil financial penalty of up to £30,000 is the statutory upper limit and any penalty must be set in accordance with government guidance and local council policy, he adds. In Southwark, if a landlord fails to submit a selective licence application following a warning from the council, local policy suggests a much lower penalty in the region of £5,000.  

Balance

“Southwark Council have got the balance about right, and I would urge other councils to adopt a similar approach,” he adds. “Mistakes can happen and not every mistake justifies criminal sanctions. I know of other councils that issue no warning – the first a landlord or agent knows is when a notice of intent to impose a civil financial penalty drops through their letterbox several months later.

“Perhaps it’s time to replace this complex licensing framework with a simple, consistent and streamlined national licensing scheme that can sit alongside the new landlord database being introduced by the Renters’ Rights Act.”

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rachel-reeves
Licensing

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