Landlord Licensing In Salford
Neighbourhoods Scrutiny Committee
18th June 2012
Types of Licensing
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Housing Act 2004 introduced in April 2006
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Mandatory House In Multiple Occupation (HMO) licensing
• Citywide
• Covers HMOs which are 3 storey with 5 or more unrelated
tenants
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Selective Licensing
All privately rented properties in
• Seedley and Langworthy Regeneration Area (now finished)
• Parts of Broughton
• Parts of Charlestown and Lower Kersal
Aims of Licensing
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Mandatory HMO Licensing
• Improve management standards
• Property standards – amenities suitable e.g. bathrooms, kitchens
• Fire safety – appropriate fire safety precautions in place
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Selective Licensing
• Improve management standards
• Tenancy agreement, Gas safety certificate,
• Landlords to take references
Salford’s Approach
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Early adoption of legislation
Appropriate use:
• size of areas
• strength of case
Balanced approach:
• accreditation
• enforcement
• regeneration
Team
• 1 x PO
• 4.5 FTE
What licensing can deliver?
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Licence Conditions:
– 5 prescribed conditions ( gas safety certificates, electrical appliances,
smoke alarms, tenancy agreements & obtaining references)
– Conditions relating to property (Fire alarm certificate, Electrical
condition report)
– Management of Property (landlord name & address, tenancy in
appropriate language, alleygates)
– Security (locks, burglar alarm)
– Anti Social Behaviour (complaints dealt with appropriately, clause in
tenancy)
– Occupation (no sleeping in common areas)
– Environmental Management (adequate provision of bins, disposal of
refuse)
What licensing can deliver?
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Ensure that property is always covered by a satisfactory Gas safety &
Electrical safety certificates:
– Landlord Licensing team validate certificate with governing body, i.e.
Gas Safe or NICEIC
– Refer suspect certificates - Licensing has identified unregistered Gas
and Electrical engineers operating in the licensing areas
– Ensure any faults on certificates are rectified
Anti Social Behaviour – support landlords in taking appropriate action,
links with Greater Manchester Police, Anti Social Behaviour Team
Refuse – repeat offenders, work with Environmental Services
Information - comprehensive database of landlords
Wider benefits of Licensing
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Landlord Licensing generates up to date and detailed information
regarding the extent of private renting in the relevant parts of the city and
regarding the spread of houses in Multiple Occupation in particular.
This information is regularly shared with colleagues within the Council to
inform and assist them with their areas of work. This includes:
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Empty Properties -where a landlord seeks an exemption to having a license on the
grounds his property is empty a referral is made to Empty Property team to monitor .
Property condition – under the current legislation it is not possible to refuse a license
based on general poor condition of a property. However, the Licensing Team works
closely with the Housing Standards Team who will take action to address to ensure that
owners carry out any works necessary to bring a property to the relevant standards.
Planning Control – Although Landlord Licensing cannot be used as planning control in that
it cannot stop landlords renting out properties or to stop a property being converted to
House in Multiple Occupation (HMO); the team refer any new HMO’s identified to ensure
that they have the correct permissions in place and provide general information on private
renting.
How do we find properties?
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Referrals – Local community, ward Councillors, Greater Manchester
Police, landlords
Council Tax
Land Registry
Local Press – managing agents websites
Physical survey
Links to local teams – Neighbourhood management, Housing standards,
Empty property, Anti social behaviour team
Ongoing process
Licensing Process
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Confirm owner details – Land Registry search & Council Tax check
Engage with landlord regarding Licensing requirements - letters, calls
Offer support - payment options, application assistance
Online help and assistance is available
Minority of landlords who persistently fail to engage are issued with a
number warnings letters explaining the sanctions for non compliance
Landlord who does not comply would be invited for a PACE interview
under caution
Prosecution is considered as a last resort
Where there is no reasonable prospect of a landlord obtaining a licence, a
Management Order must be considered
How to get a Licence
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Licence Holder must pass a fit and proper person test – CRB
Managing agent must pass a fit and proper person test – CRB
Suitable management arrangements in place
Supply documents – Gas safety certificate, Electrical installation condition
report, Fire Safety Certificate (HMO)
Fee – various payment options are available
Mandatory HMOs only – Property must pass inspection
Issue of Licences
Mandatory HMO Licences:
• Issued for up to 5 years
• Set the maximum number of occupants that can live there
• Issued with 49 conditions (4 prescribed by legislation)
• Non transferable
Selective Licences
• Issued for up to 5 years (scheme period)
• Issued with 51 conditions (5 prescribed by legislation)
• Non transferable
Sanctions/Enforcement
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Criminal Offence - Fine of up to £20K for not apply for a licence
Rent Repayment Order – Pay back upto 12 months Local Housing
Allowance
Management Order (take control of property for a period of up to 5 years)
Criminal Offence – Fine of up to £5K for not complying with licence
conditions
Proceeds of Crime Act – 1st case is currently being pursued. This act
looks at the benefit (rent) the landlord has received whilst operating
illegally. If granted, the landlord may have to repay this benefit which a %
would come back to the Local Authority. Could be a substantial amount.
Activity - Broughton
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Covers parts of the Broughton area
Commenced 2 November 2009 up to 2 November 2014
• Licences issued – 837
• Processing – 52
• Chasing – 29
• 10 landlords prosecuted for 20 offences
• 1 landlord prosecuted for changing a Gas Safety Certificate
Activity - NDC
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Four cluster areas of Charlestown and Lower Kersal
Commenced 1st January 2011 up to 1st January 2016
• Licences issued – 464
• Processing – 38
• Chasing – 28
• 1 landlord prosecuted for 2 offences
• Pending court action in respect of 7 unlicensed properties
Activity to date
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Seedley and Langworthy
Commenced 25th May 2007 up to 25th May 2012
• Licences issued – 615
• 12 landlords prosecuted for 17 offences
• 2 rent repayment orders (over £6K to be repaid)
• 1 Landlord prosecuted for breach of 3 licence conditions
Seedley & Langworthy Outputs
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All properties are covered by a valid Gas safety certificate which has
been completed by an engineer registered with Gas Safe
All properties are covered by a satisfactory and valid Electrical installation
condition report completed by a suitable trained engineer
Identification of unregistered engineers working in area who have been
referred to the relevant agencies for enforcement action
Smoke alarms have been fitted in all privately rented properties and are in
working order
Electrical appliances provided by Landlords are being tested yearly to
ensure that are safe for tenants use
Tenants have written tenancy agreements and have contact details for
their landlord or managing agent
Langworthy outcomes
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Enforcement of Licence Conditions:
– Anti Social Behaviour – landlords are being supported to take
appropriate action to deal with their tenants unacceptable behaviour.
- Working alongside Environmental Services – disposal of refuse,
landlords taking responsibility
Sharing of information – Greater Manchester Police – Project Gulf
Supporting the work of Housing Crime Reduction team – Alleygating
projects – engaging with landlords & tenants
Fit and Proper person test – 2 licences refused, work with landlords to
raise standards
Work with Housing Standards Team – referral of properties that may be
poor condition
Empties – Cluster money
However, there is still more to do
Seedley/Langworthy, Weaste
Redesignation?
Seedley/Langworthy, Weaste
Redesignation?
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Legal Framework: one of two criteria must be satisfied
Evidence Requirement
– ASB directly linked back to private sector landlords not taking
appropriate action
– Low housing demand – value of residential premises, turnover of
occupiers, number of premises available to rent or buy
– Approval from Assistant Mayor (used to Secretary of State)
Timeline:
– Consultation commences (12 weeks)
14th May 2012
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Prepare report for Assistant Mayor
11th June 2012
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Report to Assistant Mayor
6th August 2012
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Decision becomes operative
13th August 2012
(3 months statutory notices)
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Scheme commences
13th November 2012
Formal Consultation
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Formal consultation commenced on 14th May 2012 and will run to 3rd
August 2012
Proposals – area, fee’s, conditions,
Consulting with residents, landlords, managing agents, local businesses,
organisation's likely to be affected.
– 6000 resident letters
– 1000 landlord/managing agent letters
130 responses to date
Residents are in favour of the proposals
Landlords/managing agents are generally supportive of the scheme but
have issues with the fee
Seedley/Langworthy, Weaste
Redesignation?
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Fees
Background:
– Act allows a fixed fee to be applied to each application
– Price Waterhouse Coopers commissioned to set fee and Business plan
– Fair and Transparent Fee – Self financing scheme
– Fee set at £353 for 1st application , £248 for subsequent application
– Fee and Business Plan reviewed
Current fees in other areas:
– Base fee of £576 for 1st application, £556 for subsequent application
– Discount for Accredited Landlords
– Early application discounts
Proposed baseline fee - £625
Proposed Discounts:
– Accredited landlords
– Landlords with multiple properties
– Landlords who apply in a timely manner
Future Schemes
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Approval has been sought to start looking at Eccles Community
Committee area following Seedley, Langworthy & Weaste area
Ongoing review of areas' where evidence is supportive for introduction of
scheme
Consideration being sought for an Additional House in Multiple
Occupation (HMO) scheme – covering HMO’s not already covered by
Mandatory HMO licensing or in a Selective Scheme
Any questions?
Landlord Licensing contact:
0161 793 3344
Landlord.licensing@salford.gov.uk