The decision by the London Borough of Newham to press ahead with blanket licensing for every single private landlord has come under fire, amid concerns that councils across the UK could follow suit.
From January 1, Newham will be licensing some 35,000 rental households, using selective licensing powers. Landlords who are not licensed where they are required to be will not be able to use S21 notices, and could face fines of up to £20,000. Their properties could also be taken over by the council for management.
David Salusbury, chairman of the National Landlords Association, said: “It is deeply disappointing that the London Borough of Newham has taken the decision to license all landlords in its area.
“The NLA realises that there are significant issues present in Newham, which the council is right to want to address.
“But selective licensing of landlords is designed to address distinct problems relating to housing management by targeting specific areas. Newham’s blanket approach goes beyond the intention of the legislation and has not gained the support of local landlords.
“Newham Council has provided no solid evidence to support their argument that such drastic proposals will have the impact it expects.
“Indeed, they will only increase the burdens on those who already comply with the law, without having any bearing on those who blatantly ignore it. The NLA offered an alternative strategy which would have enabled the council to focus their resources squarely on the rogue operators.
“This decision has wider implications for the supply side of the private rented-sector. The NLA will be consulting with other stakeholders to assess the potential impact and how best to respond as an industry.”
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