Monday, 11 February 2013

Second Council to Introduce Mandatory Licensing for all Landlords

A second major English council has announced plans to introduce mandatory licensing for all landlords who own property within their authority. Liverpool City Council are about to start a consultation period with the intention to bring in mandatory licensing throughout the city in early 2014.

Last year the London Borough of Newham became the first English Council to introduce a mandatory licensing scheme for all landlords in their area. At the time NetRent predicted that other councils would follow their lead. Liverpool is the first Council to announce their plans. They will not be the last.

Scotland has had mandatory licensing for all landlords for several years. However the success of this scheme has recently been seriously questioned by the Scottish Conservatives who calculated that identifying each rogue landlord has cost £410,000. They also claim that just running the registration website costs £300,000 a year.

This is the type of scheme Labour leader Ed Miliband wants to see rolled out in England and both the Welsh Government and the Northern Ireland Assembly say they want to follow suit. Meanwhile it seems clear that English Councils will introduce their own licensing schemes.

There is no doubt that Councils can generate significant income from Landlord Licensing, although they and the Scottish Government claim that this is not the reason for introducing such a scheme. They claim that mandatory licensing helps them identify and deal with rogue landlords.

The reality is that good landlords will be forced to pay to police bad landlords.

Click here for more information about the proposals by Liverpool City Council
Please note that Liverpool CC have informed us that the consultation has not started yet.

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