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20/04/2006
Landlord Licensing Confusion |
Following the Governments introduction of their Landlord Licensing Scheme many Landlords and Governing Bodies have expressed major concern over the Governments advertising campaign and resulting confusion.
The Government is being accused of running a misleading advertising campaign where Landlords are told “No Property Licence, No Rent” The confusion comes as some of the advertising does not make it clear that not all Landlords have to be licensed.
Agents and private landlords have been inundating ARLA and other industry contacts anxious for clarification, as a result many industry experts are concerned that this confusion will migrate throughout the lettings market and spread unease with potential investors and create undue problems for landlords with potential tenants.
The reality is that under the Housing Act it is only owners of certain houses in multiple occupation (HMO’s), properties with five sharing tenants or more, with properties three storey or more that must be licensed. Qualifying Landlords have 3 months from April to apply and obtain a license from their local authority.
To further rub salt into an open wound it is reported that the issuing Local Authority have the right to charge as much as they want for the licences.
Landlords or their Agents have to prove their properties are “Fit & Proper” and be thoroughly inspected and must bring the property up to standards before the licence will be issued. Failure to obtain a licence can result in severe penalties with potential fines up to £20,000 and possible bans.
For further information on Landlord Licensing visit the governments website www.propertylicence.gov.uk
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