Selective Licensing Consultation - Frequently asked questions

Below are a series of questions and answers in regards to the Selective Licensing Consultation.

What are the Council consulting on?

The Council are consulting on a new proposed Selective Licensing scheme for in the wards of Hastings and Lemyngton.

Why don't you just go ahead and introduce Selective Licensing without consultation?

It is a statutory requirement that the Council consult with all residents, landlords, business and other stakeholders in the proposed area in order to introduce a Selective Licensing scheme.

Why are you consulting?

Part 3, Section 80 (9) of the Housing Act 2004 states that when considering designating an area the local housing authority must:

• take reasonable steps to consult persons who are likely to be affected by the designation; and
• consider any representations made in accordance with the consultation

How long will the consultation last?

We are consulting for 12 weeks from the August 3 2020 to the October 23 2020.

How can I have my say?

The consultation is now closed.

What happens after the consultation?

A consultation report will be produced to record the views/opinions of those consulted. At this time the Council will then have the ability to:

• not proceed with the licensing scheme at this time
• change the proposed licensing scheme and implement it
• implement the Selective Licensing scheme in designated areas as detailed in this document

What is Selective Licensing?

Selective Licensing is a discretionary licensing scheme, which requires all landlords operating within a designated area to licence any privately rented property within that area. Selective Licensing was introduced within the Housing Act 2004 under Part 3, Section 80. 

For Selective Licensing the Council must be satisfied that one of the following issues are present, and that licensing will help to improve the issue:

• low demand (or is likely to become such an area)
• significant or persistent problems caused by anti-social behaviour
• poor property conditions
• high levels of migration
• high levels of deprivation
• high levels of crime

Why are you considering the introduction of Selective Licensing?

The private rented sector is an important part of providing a diverse housing offer in the borough.

There is a significant amount of privately rented properties, which are of poor quality and are poorly managed. The impact of poor quality and badly managed accommodation can be very negative on the local neighbourhood.

Problems such as antisocial behaviour, high rates of crime and low demand will blight the area and lead to low property values and lack of investment in the area.

Where are you considering the introduction of Selective Licensing?

The Council are proposing the introduction of Selective Licensing in the Hastings and Lemyngton wards.

The Council analysed other information such as housing condition, deprivation and environmental nuisance actions (fly tipping, noise complaints, etc) undertaken by the Council.

Analysis of all this data showed that these areas ranked highest on virtually all these factors and provided justification for proposing Selective Licensing in this area.

What are the benefits of Selective Licensing?

The Council believe Selective Licensing will:

• improve management standards
• improve the quality of our neighbourhoods
• support safe, inclusive and cohesive communities

What evidence is there that Selective Licensing is needed?

Detailed evidence for the proposed scheme can be found in the Selective Licensing Justification Report - August 2020 (PDF Document, 0.88 Mb)

What properties could be affected by Selective Licensing?

All privately rented properties within the proposed areas would be subject to Selective Licensing.

Are there any other properties which are exempt from Selective Licensing?

Council properties, properties managed by registered providers (formerly known as Housing Associations), other housing providers and other regulated bodies, will be exempt.

I thought you already licensed properties such as Houses in Multiple Occupation (HMOs)?

Under Part 2 of the Housing Act 2004, the Council has a statutory duty to licence privately rented HMOs, with 5 or more persons in 2 or more households, sharing an amenity regardless of the number of storeys to be licensed. This is known as Mandatory Licensing.

The Selective Licensing scheme applies to all other private rented properties, which would include self-contained flats and single houses and other property types within the proposed area.  

Any properties which currently have HMO Licences (Mandatory or Additional) would be exempt from Selective Licensing, as they are currently licensed.

Is this a property or landlord licence scheme?

This is a property licence scheme, and every property a landlord owns within the proposed boundary would need its own licence.

How long will the licence last?

The period of designation lasts for five years and will include Mandatory and Discretionary conditions aimed at ensuring licensed properties are safe, meet basic standards and are managed in a satisfactory way.

Is the licence transferable?

A property licence is not transferable to another property, person or organisation.

Would an empty property need a licence?

A licence is only required if the property is privately rented and occupied.

What is the application process?

The Council is working towards an online application and payments system.

In some circumstances further information may be required before a licence can be processed, eg informed consent forms for people that are named in licence applications, joint freeholders.

What would happen if a landlord failed to apply for a licence?

It is a legal requirement for landlords to apply for a licence, and a criminal offence if a landlord fails to do so. This could then involve a financial penalty, which if prosecuted through the courts could be an unlimited fine.

Who should be the licence holder?

The Council can only grant a licence to someone who is in control of the property. It is the owner's responsibility to ensure that an application for a licence is made for their property; however, they may not necessarily be the licence holder.

Landlords who manage their properties directly should apply for a licence. Where a managing agent is used, the managing agent could apply for the licence and the landlord will need to provide information about the property and give their consent.

Where a manager is employed, financial arrangements must be in place to ensure that any works deemed necessary for the proper management and maintenance of the property can be carried out.

When a limited Company is the licence holder, then the company secretary or other authorised signatory should be the licence holder. You must be a resident in the UK to be a licence holder.

What happens if I don't get a licence?

If you don't apply for a licence and continue to rent your property, then you will be committing a criminal offence.

What happens if the licence conditions are breached?

If a licence is issued and the conditions are subsequently breached, this could lead to the Council taking Court action or issuing a civil penalty of up to £30,000.

Breaching the licence conditions could lead to the revocation of the licence unless a suitable alternative licence holder could be found

Will my property be inspected?

The Council is aiming to inspect every property once during the five year licence period.

A higher risk property will be inspected sooner than a lower risk one. The level of risk, depends on previous history, condition, management, etc.

How much will a licence cost?

The licence fee will be £700 (subject to change) and will be for the duration of the designation of the Selective Licensing scheme, which will be five years from the commencement of the approval of the licence. 

Can I pay in instalments?

There is no option to pay by instalments. The licence fee is paid in two parts:

• £395 when you apply for your licence
• £305 once the licence has been approved

Isn't this just a way of raising revenue for the Council?

Any income generated from licensing fees can only be paid towards the running costs of the scheme.

The Council are not allowed to make any surplus on the scheme to be used for any other purpose.

I'm a landlord of a property that could be subject to Selective Licensing. What do I need to do?

If you are a landlord of a privately rented property within the proposed area then you will need to apply for a licence, unless your property is deemed exempt as mentioned previously.

There will be one licence fee of £868 (subject to change). The licence and fee will be for the duration of the designation of the Selective Licensing scheme, which will be five years from the commencement of the scheme. 

I'm a tenant of a property that could be subject to Selective Licensing. How will it affect me?

As stated earlier, Selective Licensing requires landlords to provide items such as gas safety certificates, the safe provision of electrical appliances and furniture and to keep the fire detection and alarm system in working order.

This should provide a greater degree of safety and reassurance to the tenant.

Tenants will have reassurance that checks have been done to ensure both the property and any shared facilities are suitable and that the property is suitable to be occupied by the number of people living there.

Will I be able to see which properties are licensed?

The Council will keep a register of properties that are licensed and this will be publicly available on our website.

What conditions will apply to Selective Licensing?

There will be a range of conditions attached to each licence which will relate to the management of the property. There are some mandatory conditions, which are required by law to be included in the licence.

These include conditions regarding gas safety, electrical safety, smoke alarms etc.

The Council have the discretion to attach a range of local conditions. These will include conditions regarding energy performance, security, property management and dealing with anti-social behaviour amongst others.

Full details of these conditions can be found in the draft selective licensing policy document:Draft Selective Licensing Policy - August 2020 (PDF Document, 0.35 Mb)

How will you manage to license all these properties?

The Council are proposing to employ more officers to implement the scheme.

I'm not a tenant but I do live in the area so how would it affect me? 

Selective Licensing will ensure that privately rented properties in your area are being managed efficiently and will enable the Council to take enforcement action against a wider range of properties where there may be problems.

This should result in benefits to all residents, businesses and visitors to the local area.

Will you penalise those that don't licence?

There will be a targeted approach to enforcement and the Council will use a variety of methods to find those that haven't licensed. We will respond to complaints received about unlicensed property.

Where necessary we will seek to prosecute those that continue to refuse to licence their property.

How will you know which ones are unlicensed?

Tenants will be able to inform the Council if their property is unlicensed. The Council will use a variety of methods, working with other partners to seek out unlicensed properties.

There will be a public register of licensed property, so it will be easy for people to find out if the property they are concerned about is licensed or not.

If you decide to introduce Selective Licensing, when will it commence?

The consultation runs until the October 23, 2020, after which a report will be taken to Cabinet on the outcome of the consultation in December 2020.

If Cabinet approves the designation of a Selective Licensing scheme the Council will make an application to the Secretary of State if required under legislation and then issue a Public Notice for a minimum of 3 months prior to implementation.