What is Selective Licensing in the private rented sector?
Under the Housing Act 2004, local authorities currently have powers to introduce selective licensing of privately rented homes to address problems in their area, or any part of them, caused by one or more of the following conditions:
- low housing demand (or is likely to become such an area)
- a significant and persistent problem caused by anti-social behaviour
- poor property conditions
- high levels of migration
- high level of deprivation
- high levels of crime
Local authorities are required to obtain confirmation from the Secretary of State for any selective licensing scheme which would cover more than 20% of their geographical area or would affect more than 20% of privately rented homes in the local authority area.
Licensing schemes increase your business costs and put unnecessary burden on the majority of compliant landlords. So please contact your local council to find out what regulations might apply to your buy-to-let.