Licensing the Private Rented Sector in Ealing. Frequently Asked Questions (FAQs)

Transcription

1 Licensing the Private Rented Sector in Ealing Frequently Asked Questions (FAQs) Section A - General 1. What is the council proposing? 2. What are the benefits of licensing? 3. There are a lot of good landlords in the borough are these schemes necessary? 4. How do the proposed licensing schemes fit with the council s housing strategy? 5. What else is the council doing to address the problems associated with the PRS? 6. What will the council do to support landlords under its proposed schemes? 7. What is the London Landlord s Accreditation Scheme (LLAS)? 8. What are the proposed licence conditions? 9. What does a "fit and proper person" mean? 10. Do landlords have to pay a fee for their properties to be licensed? 11. What sanctions can be imposed on landlords who break licence conditions? 12. What happens if a landlord does not apply for a licence? 13. How long does a licence last? 14. When should a landlord apply for a licence? 15. Does a landlord have to apply for a licence for each property? 16. Landlords may have properties in several different authorities; do they have to apply for licences in those authorities too? 17. Can the council refuse to licence a property? 18. What will happen if the council refuses to licence a property? 19. Can landlords appeal against licensing decisions made by the council? 20. Is VAT payable on the licence fee? 21. Can licences be transferred? 22. In what circumstances are refunds available? 23. What happens if the landlord decides to sell a property or wants to occupy it himself? 24. How can landlords, tenants and others let the council know their views on these proposals? 25. What happens after the public consultation? 26. What are the associated documents that describe the schemes in more detail and where can they be found? Section B - Additional licensing proposals for houses in multiple occupation (HMOs) 27. What is a House in Multiple Occupation (HMO)? 28. Why are HMOs of concern to the council? 29. What is HMO licensing? 30. What would be the effect of additional licensing on areas outside the borough? 31. Why does the council want to introduce an additional licensing scheme when there is already a mandatory licensing scheme in place? 32. What evidence does the council have to support the proposals for an additional licensing scheme? 33. Why use additional licensing to deal with the problems associated with HMOs? 34. What is the Council doing about HMOs which are already licensable under the mandatory scheme? 35. Do landlords still need an HMO licence if they are accredited? 36. What types of HMO would require a licence under the scheme? 37. Why do the proposals include these types of HMOs and not others?

2 38. Can you give any examples of the kinds of property that would be included in the scheme? 39. How many properties will the scheme apply to? 40. Why does the proposed scheme apply to the whole of the borough? 41. Who would need to apply for an additional HMO licence? 42. How would a landlord make an application for an HMO licence under the proposed scheme? 43. What is the proposed additional licence fee? 44. Would there be any exemptions to licensing under the additional licensing scheme? 45. Can an HMO licence be revoked? 46. What happens if a licence cannot be granted or revoked? 47. What would happen if a landlord failed to apply for a licence for an HMO under the proposed additional licensing scheme? 48. If the council does introduce additional licensing, how will it know whether the scheme is working? 49. What would happen if the council decides not to introduce an additional licensing scheme? 50. What would happen at the end of the additional licensing scheme if the council did decide to introduce it? Section C Selective licensing proposals for parts of Acton and Southall 51. What is selective licensing? 52. Why does the council want to introduce selective licensing? 53. Where does the council intend to introduce the scheme? 54. How have the proposed areas for selective licensing been chosen? 55. Does the authority intend to roll out the scheme across the whole borough? 56. Are there any exemptions to selective licensing? 57. How would the proposed selective licensing scheme work? 58. What would be the licence conditions? 59. Do landlords still need a licence if they are accredited? 60. How long would the licences last? 61. What is the proposed selective licence fee? 62. How will selective licensing affect tenants living in the designated areas? 63. How would tenants know if their property is licensed if selective licensing is introduced in the borough? 64. How would other residents in designated areas be affected by selective licensing? 65. What would be the effect of selective licensing on areas outside the borough? 66. If the council does introduce selective licensing, how will it know whether the scheme is working? 67. What would happen if the council decides not to introduce a selective licensing scheme? 68. What would happen at the end of the selective licensing scheme if the council did decide to introduce it?

3 SECTION A GENERAL 1. What is the council proposing? Ealing Council is proposing to introduce an additional licensing scheme for all Houses in Multiple Occupation (HMOs) that are two storeys or more under the Housing Act This will complement the existing mandatory licensing scheme which relates to HMOs that are three storeys or more. For more details on the proposed additional licensing scheme go to Section B. The council is also proposing to introduce a selective licensing scheme for all privately rented homes in five wards in the borough where targeted action to improve conditions in the private rented sector (PRS) is considered necessary. The five wards affected by this proposal are: Acton Central, East Acton, South Acton, Southall Green and Southall Broadway wards. For more details on the proposed selective licensing scheme go to Section C. 2. What are the benefits of licensing? The benefits of the licensing of privately rented homes include: Supporting landlords to achieve a benchmark standard of property management Offering wide ranging support for landlords with licensed accommodation while working to drive rogue landlords out of business Improving the desirability of areas with licensing as places where people want to live. Encouraging the use of reputable managing agents when landlords are inexperienced or live outside the borough Reassuring tenants that landlords with licensed accommodation are providing housing of a decent quality that is managed to a reasonable standard Ensuring a level playing field for landlords by preventing rogue landlords from letting substandard accommodation at lower rents Helping to protect investment by landlords in their property 3. There are a lot of good landlords in the borough, are these schemes necessary? The council acknowledges that many landlords provide well managed accommodation, which does not cause any problems for tenants and the wider community. There are however privately rented properties that are poorly managed, suffer from overcrowding and/or provide unsafe accommodation. These properties have a negative effect on their occupants and the local area. The council wants to work together with responsible landlords and other agencies to address the problems associated with the poor management of these properties. 4. How do the proposed licensing schemes fit with the council s housing strategy? The council has developed a housing strategy to take account of major changes in the housing sector and wider demographic and economic changes in Ealing. The strategy addresses the challenges of a growing population, increasing housing demand, and the impact of austerity, growth and regeneration in the borough. The housing strategy considers how Ealing s future housing needs will be met. Alongside the building of new homes as part of the regeneration of Ealing s largest estates and the identification of further housing development opportunities, the council will focus on using the borough s existing housing stock of both social and private dwellings more effectively and will continue its programme of bringing empty homes back into use with a mixture of enforcement where necessary and assistance through Empty Property Grants.

4 There has been substantial growth in Ealing s private rented sector (PRS) in recent years. The council sees the PRS as an important part of its housing strategy for people in housing need. The council is committed to enhancing the quality and sustainability of the sector. Licensing the PRS can help the council achieve these objectives. 5. What else is the council doing to address the problems associated with the PRS? The council already uses a wide range of powers and approaches to help improve the condition of private sector housing in the borough, some of which is privately let. The Regulatory Services, Property Regulation teams are responsible for enforcing a wide range of statutory provisions relating to housing and environmental conditions affecting health and safety in the home. The service seeks to identify the minority of landlords, agents, property owners or businesses that persistently break the law and ensure that they face proportionate and meaningful sanctions. By facilitating compliance through a positive and proactive approach, the service aims to achieve higher compliance rates and reduce the need for reactive enforcement actions. However, those that deliberately or persistently break the law are brought to book by the council working with a variety of partners including the Metropolitan Police, London Fire Brigade, HMRC and Immigration Enforcement. The service utilises its full remit of enforcement powers including the serving of statutory notices/orders and, where these are breached, consideration will be given to prosecuting landlords in accordance with the council s enforcement policy. In August 2015 a landlord was prosecuted for failing to license four HMOs, comply with HMO Management Regulations, Housing Act Prohibition Orders and Improvement Notices resulting in fines and costs totaling 75,215. The service focuses its greatest inspection effort on the highest risk properties, those in worst condition and properties owned by landlords who regularly fail to comply with regulations or frequently own properties in poor condition. Landlords who have achieved good levels of compliance (for example through membership of accreditation schemes) often receive lighter inspections, where risk assessment justifies this. In the last twelve months greater focus has been given to applying stronger sanctions including the issue of Demolition Orders to deal with illegal outhouses. 6. What will the council do to support landlords under its proposed schemes? The council intends to enhance its good working relationship with responsible private sector landlords as part of the proposed licensing schemes. Specific support measures will include: A discount on the licensing fee for landlords accredited with the London Landlord s Accreditation Scheme (LLAS.) A discount on 5 year licenses for applications received 3 months prior to the scheme s commencement date. Giving detailed advice and assistance to landlords in relation to the council s adopted standards for HMOs Financial assistance in the form of Empty Property Grants for prospective landlords who bring empty properties back into use Making available other grants to help bring properties occupied by vulnerable persons up to the Decent Homes Standard An education campaign to help landlords understand their rights and responsibilities and the provision of online resources such as sample letters and tenancy agreements Establishing a landlords' focus group Continuing the council's contribution to the annual Landlords' Forum

5 7. What is the London Landlord s Accreditation Scheme (LLAS)? The LLAS provides landlords with a range of skills to help them run a successful property business. It also helps tenants to identify private landlords and agents who are committed to providing good quality accommodation. Currently there are 830 landlords accredited with the LLAS in Ealing. To find out more about the scheme, please visit Alternatively, call or LLAS@camden.gov.uk 8. What are the proposed licence conditions? There would be conditions attached to each licence (for the additional and selective licensing schemes) which would relate to the management of all licensed properties. Under the terms of the Housing Act 2004, several conditions are mandatory. They include: A gas safety certificate to be obtained annually and produced for inspection by the council (if there is a gas supply to the house) Electrical appliances and furniture supplied by the landlord must be kept in a safe condition Smoke alarms must be installed in the property and should be well maintained The licence holder must supply the occupiers with a written tenancy agreement The licence holder must secure references from prospective tenants In addition to the mandatory conditions the council may attach local conditions. These conditions mean that landlords would have to upgrade currently unsafe properties and would enhance the protection for tenants. The licence holder would also have to be deemed as a fit and proper person to hold a licence. For more details on the proposed licence conditions for additional and selective licensing please go to 9. What does a "fit and proper person" mean? Ealing Council will carry out checks to make sure that the person applying for a licence is a "fit and proper person". In deciding whether someone is "fit and proper", the council must take into account, amongst other matters: Any previous convictions relating to violence, sexual offences, drugs and fraud Whether the proposed licence holder has broken any laws relating to housing or landlord and tenant issues Whether the person has been found guilty of unlawful discrimination Whether the person has previously managed properties that have broken any approved code of practice Local authorities can also decide if a person is not fit and proper as a result of association with other persons who would not be considered fit and proper where this would affect the management of a licensed property.

6 10. Do landlords have to pay a fee for their properties to be licensed? Yes. Fees are payable to the council to administer the two schemes. The fees levied are specific to the two schemes reflecting the different nature of additional and selective licensing. Full details about the fee structure and associated discounts can be found at Schedule of proposed fees for Additional and Selective Licensing at Fees are payable by landlords not tenants. 11. What sanctions can be imposed on landlords who break licence conditions? If a landlord failed to comply with the licence conditions it could result in the licence being revoked and/or the landlord being prosecuted. On conviction the landlord could face an unlimited fine. 12. What happens if a landlord does not apply for a licence? It is a criminal offence to operate without a licence in a designated area and could result in the landlord being prosecuted. On conviction the landlord could face an unlimited fine and any rent collected during the unlicensed period could be reclaimed by either the tenant or the council. The local authority will be able to apply to the first-tier property chamber for a rent repayment order, in order to recoup any housing benefit the landlord has received during the unlicensed period (maximum 12 months). No offence is committed if there is an outstanding application for a licence or a temporary exemption notice is in force. 13. How long does a licence last? Licences can be granted for up to five years. Licences will usually end on the scheme expiry date. The council may grant licences for shorter periods in certain circumstances. Complete applications received within the first three months of the scheme s designation would be considered an indication of professional property management and a five-year licence would be granted. The property would then be risk assessed for an inspection to take place within five years from when the licence was issued. Were the council to become aware of serious problems at a property which had not been adequately dealt with by the landlord, the council would consider issuing a twelve month licence and make an inspection within that 12 month period. 14. When should a landlord apply for a licence? Landlords will need to request an application pack from the Property Regulation licensing team as soon as they begin letting a property that meets the criteria for licensing. 15. Does a landlord have to apply for a licence for each property? Yes. A licence will only be valid for one property. Landlords will require a licence for each property they own.

7 16. Landlords may have properties in several different authorities; do they have to apply for licences in those authorities too? Yes, where applicable. Each local authority is responsible for determining and issuing a licence in their area. This allows local authorities to take their local needs and policies into account when making decisions about licensing the PRS in an area. 17. Can the council refuse to licence a property? Yes. If the property does not meet the conditions set out and/or if the licence holder/manager is not a "fit and proper person". 18. What will happen if the council refuses to licence a property? If a landlord fails to bring a property up to the required standard, or fails to meet the "fit and proper person" criteria, the council can apply to issue an Interim Management Order (IMO), which if granted, allows the council to step in and manage the property. The owner keeps their rights as an owner. This order can last up to a year until suitable permanent management arrangements can be made. If the IMO expires and there has been no improvement, the council can apply for a Final Management Order. If granted, this can last up to five years and can be renewed. 19. Can landlords appeal against licensing decisions made by the council? Landlords may appeal against council decisions if the council decides to: Refuse a licence Grant a licence with conditions Revoke a licence Vary a licence Refuse to vary a licence If a landlord wants to appeal a decision of the council s, the appeal must be lodged with the first-tier tribunal - property chamber (usually within 28 days). 20. Is VAT payable on the licence fee? No. VAT is not payable on the licence fee. 21. Can licences be transferred? The Housing Act 2004 makes licences non-transferable. 22. In what circumstances are refunds available? The council can offer refunds on a licence fee if: A landlord makes a duplicate application A landlord makes an application for an exempted property by mistake The council will not give a landlord a refund if: The council has turned down an application A landlord withdraws their application The council revokes (takes away) a landlord s licence

8 23. What happens if the landlord decides to sell a property or wants to occupy it himself? The council can issue a temporary exemption notice for up to three months if reasonable steps are being taken to ensure the property no longer requires a licence. No refund or partial refund will be given for the licence fee already paid. 24. How can landlords, tenants and others let the council know their views on these proposals? The council wants to hear the views of landlords, tenants and others about its proposals for the licensing of privately rented homes. The views of people living outside the borough and who might be affected by the council s proposals are valid too. The council is, therefore, consulting about its proposals. The consultation will run for 12 weeks from 11 January 2016 to 3 April The council has appointed an independent company Housing Quality Network (HQN) to manage the consultation exercise. Respondents can complete an online questionnaire about the proposals. Alternatively, paper copies of the questionnaire are available on request from HQN at: ealingmeetings@hqnetwork.co.uk Telephone: Post: HQN, Rockingham House, St Maurice's Road, York YO31 7JA The council is also holding a series of public meetings where information about the proposals will be outlined and views on the licensing schemes can be fed back to the council. The public meetings are being held on: Tuesday 23rd February 2016, 7.30pm until 9.00pm. Liz Cantell Room, Ealing Town Hall, New Broadway, Ealing W5 2BY Wednesday 2nd March 2016, 7.30pm until 9.00pm. Hambrough Primary School, South Road, Southall UB1 1SF Thursday 10th March 2016, 7.30pm until 9.00pm. Everyone Active Acton Centre, High Street, Acton W3 6NE Numbers at the meetings will be limited so that everyone attending has a chance to ask questions and give their views. Those interested in booking a place at a public meeting should contact HQN in advance at: ealingmeetings@hqnetwork.co.uk Telephone: Post: HQN, Rockingham House, St Maurice's Road, York YO31 7JA 25. What happens after the public consultation? The public consultation runs for 12 weeks. Starting on 11 January the consultation finishes on 3 April 2016, giving people time to consider and respond to the council s proposals fully. At the end of this period the council will consider all representations made before deciding whether or not to introduce additional licensing for two storey HMOs throughout Ealing and selective licensing in the five designated wards. The council will publish the findings of the consultation and details about next steps once the consultation has been completed. Should the council introduce the licensing schemes there would be at least three months notice before any scheme came into force.

9 26. What are the associated documents that describe the schemes in more detail and where can they be found? The key documents associated with the council s licensing proposals are: The case for licensing the private rented sector in Ealing Schedule of proposed fees for Additional and Selective Licensing Proposed Additional Licensing Conditions Proposed Selective Licensing Conditions Terms & Definitions They can be accessed from the council's website They are also available as paper copies and can be obtained on request from HQN at: ealingmeetings@hqnetwork.co.uk Telephone: Post: HQN, Rockingham House, St Maurice's Road, York YO31 7JA SECTION B ADDITIONAL LICENSING PROPOSAL FOR HOUSES IN MULTIPLE OCCUPATION (HMOs) 27. What is a House in Multiple Occupation (HMO)? Houses or flats occupied by different households as their main residence are called Houses in Multiple Occupation or HMOs. These include bedsits and other properties where facilities such as kitchens and bathrooms are shared plus some types of buildings consisting of poorly converted self-contained or studio flats. 28. Why are HMOs of concern to the council? HMOs are of concern to the council because while privately rented property in the borough can be of a high quality, there is evidence that some properties are badly managed, in poor condition and compromise the health, safety and welfare of tenants. This is especially the case with HMOs. These poorly managed HMOs can have a negative impact on a local community and are sometimes associated with problems such as noise nuisance and inadequate waste management. 29. What is HMO licensing? The Housing Act 2004 requires that HMOs of three storeys or more, which are occupied by five or more persons in more than one household and who share or lack a kitchen and/or bathroom must be licensed. This is known as Mandatory Licensing. The Act also allows councils to introduce licensing schemes for other types of HMO that are not covered by the mandatory licensing scheme. This is known as Additional Licensing. 30. What would be the effect of additional licensing on areas outside of the borough? The introduction of an additional licensing scheme in Ealing might have an effect on local

10 housing markets beyond the borough s boundaries. This is because, if the council were to introduce a borough wide scheme, it may cause the displacement of problems to neighbouring local authorities. Residents, businesses, landlords, tenants and other stakeholders outside the borough have also been invited to take part in this consultation exercise. 31. Why does the council want to introduce an additional licensing scheme when there is already a mandatory licensing scheme in place? The council is aware that the problems with HMOs in the borough are not confined to those to which the existing mandatory scheme applies. In line with the council s housing strategy and the Labour Party s manifesto commitment at the time of the borough elections in 2014, an additional licensing scheme has been proposed as part of the council s objective to improve the condition of all HMOs in the borough. 32. What evidence does the Council have to support the proposals for an additional licensing scheme? In-depth research has been undertaken to analyse Ealing s PRS. The findings from this research provide evidence to support the council s proposals for a borough wide additional licensing scheme and are detailed in The case for licensing the private rented sector in Ealing. See Why use additional licensing to deal with the problems associated with HMOs? Currently the council has a largely reactive approach to tackling problems identified in the borough s HMO sector. This is mainly driven by HMO tenants who contact the council to report poor housing conditions or complain about the management of their accommodation. This can mean that potentially dangerous situations are only dealt with once they have been reported to the council. An additional licensing scheme would place a responsibility on the landlord to inform the council that their property is in multiple occupation and encourage them, with the council s support, to ensure that they meet the required standards. The council can then prioritise dealing with the properties of most concern and focus action on those landlords who fail to license their properties to make the most effective use of its resources. The council also considers that the introduction of a borough-wide additional licensing scheme would: Allow the council to develop a more comprehensive database of HMOs Help the council develop a coordinated approach to the HMO sector Better protect the health, safety and welfare of HMO tenants Reduce any detrimental impact on local neighbourhoods and reduce the number of complaints associated with HMOs Ensure that only those landlords who are fit and proper persons can own/manage HMOs in the Borough 34. What is the Council doing about HMOs which are already licensable under the mandatory scheme? The council has a programme to identify HMOs which may need a licence under the current mandatory licensing regime but which do not have one.

11 The council will continue to use its full remit of enforcement powers including the serving of statutory notices/orders and where these are breached, consideration will be given to prosecuting landlords in accordance with the council's enforcement policy. In August 2015 a landlord was prosecuted for failing to license four HMOs, comply with HMO Management Regulations, Housing Act Prohibition Orders and Improvement Notices resulting in fines and costs totalling 75,215. The council focuses its greatest inspection effort on the highest risk properties, those in worst condition and properties owned by landlords who regularly fail to comply with regulations or frequently have properties with poor conditions. Landlords who have achieved good levels of compliance, for example through accreditation schemes often receive lighter inspections, where risk assessment justifies this. 35. Do landlords still need an HMO licence if they are accredited? Yes, but under the proposals landlords would be entitled to a discount on the licensing fee. For further details please refer to FAQ What types of HMO would require a licence under the scheme? The proposed additional licensing scheme, if approved, would require that landlords apply for a licence for any HMO falling within the scope of the scheme. The proposed new scheme would apply to: Any HMO of two or more storeys, occupied by four or more persons in two or more households and where some or all facilities are shared or lacking Any flat occupied by four or more persons in two or more households and where some or all facilities are shared or lacking and where the flat is located above a commercial unit Any HMO of two or more storeys, with a resident owner and occupied by four or more other persons in two or more households and where some or all facilities are shared or lacking Any house of two or more storeys comprised of both self-contained and non-selfcontained units of accommodation occupied in aggregate by four or more persons in two or more households (not including a resident owner), some of whom share or lack one or more basic amenities such as a bathroom, toilet or cooking facilities Certain buildings converted into flats (section 257 HMOs) as detailed in Terms and Definitions. See Why do the proposals include these types of HMOs and not others? The proposals have taken into account the risks that have been associated with certain HMOs and in particular those linked to fire safety. Factors such as the height of a building, the number of units of accommodation and the number of occupiers have been considered because they all affect the potential for the occurrence and the spread of a fire. 38. Can you give any examples of the kinds of property that would be included in the scheme? The kinds of the property that would require a licence under the proposed scheme include: Shared houses and flats: this will include bed-sit accommodation, houses rented out in rooms, or houses which are shared by friends, students or groups of

12 professionals even where there is one single tenancy agreement. Bedsits or houses rented out in rooms: the tenants will have no connection with each other and the landlord rents rooms separately. The tenants will have exclusive use of their own rooms but will share one or more basic amenity. Hostels: vulnerable occupiers who may need support to live independently Student accommodation: students living within a building and sharing one or more basic amenity. Student accommodation may be exempted from licensing if run by an exempted university or organisation. Property with a residential landlord: the owner lives in the property but rents rooms to others unconnected with him or her or with each other. This would include a situation in which lodgers live in the same property as their landlord and may or may not be provided with meals by him or her. Certain buildings converted into flats: as detailed in Terms and Definitions. See How many properties will the scheme apply to? It is estimated that the scheme could apply to around 15,000 20,000 properties in the borough. 40. Why does the proposed scheme apply to the whole of the borough? Given the relatively high number of town centres in the borough and the distribution of employment and transport facilities, HMOs are spread across the borough. An area based scheme would cause inconsistency in regulation and confusion among landlords and tenants. 41. Who would need to apply for an Additional HMO Licence? The owner of an HMO falling within the scope of the scheme would have to apply for the licence. If a managing agent is used to let and manage the property on the owners behalf they would be required as the responsible person to apply for the licence. 42. How would a landlord make an application for an HMO licence under the proposed scheme? Applications for a licence under the proposed scheme would involve completing and submitting an application form to the council together with the required fee. The form would ask some simple questions about the property, such as the number of rooms to let, shared bathrooms, toilets and kitchens as well as details of safety measures that have been put in place, such as the presence, type and extent of a fire alarm detection system and other fire safety precautions. Evidence concerning gas and electrical safety as well as maintenance and management arrangements, such as a fire risk assessment, would be required in addition to a floor plan with the room sizes and uses clearly shown. Any proposed licence holder or manager of the property would be required to make a declaration that they are a fit and proper person. Following the receipt of a complete application, a licence would be granted with standard conditions prior to a full inspection taking place. 43. What is the proposed additional licence fee? In setting the licence fees, the council must follow certain principles established by the European Services Directive (ESD). The fee structure is required to be reasonable and

13 proportionate and includes the actual and direct costs of processing the licence application and the cost of monitoring compliance by landlords with the terms of their licenses. The council is proposing to charge a fee of 1,100 plus 30 per habitable room for a five year licence for an HMO. The proposed fee for a property with four lettings, equates to around 20.33p per unit per month. Discounts will be available for early applicants and members of a landlord accreditation scheme. Additional charges would apply to landlords who are not licensed and have been sent warning letters. Full details of the proposed fee structures, showing discounts and penalties, can be found in Schedule of proposed fees for Additional and Selective Licensing at Following a recent ruling by the Supreme Court, (R (on the application of Hemming (t/a Simply Pleasure Ltd) and others) (Respondents) v Westminster City Council (Appellant) [2015] UKSC 25, on appeal from [2013] EWCA Civ 591), it is clear that the council can also include the costs of enforcement associated with licensing. 44. Would there be any exemptions to licensing under the additional licensing scheme? Yes. The Housing Act 2004 specifies types of properties which are not HMOs for the purpose of the Act. Examples of properties where under certain circumstances no licence will be required under the proposed scheme are given in Terms and Definitions at Can a HMO licence be revoked? If a building is no longer operated as an HMO which requires a licence, a request that the council revokes the licence can be made. The council has the power to revoke licences at the licence holder s request but does not have to do so. The council may also revoke the licence where: There has been a serious or persistent breach of licence conditions The licence holder is no longer considered to be a fit and proper person and that the management of the house is no longer being undertaken by fit and proper persons. 46. What happens if a licence cannot be granted or revoked? If the council is unable to grant a licence or the licence is revoked, it must make an Interim Management Order (IMO). The council (or their appointed service provider) then takes over the management of the HMO, collects the rents and has responsibility for the tenancies and upkeep of the property. The ownership of the HMO does not change. The order can last for up to 12 months although it may be revoked earlier if during the lifetime of the IMO, the council has been able to grant a licence. 47. What would happen if a landlord failed to apply for a licence for an HMO under the proposed additional licensing scheme? There are strict penalties for operating an HMO subject to an additional licensing scheme without a licence. A landlord may be prosecuted and on conviction face an unlimited fine. Landlords may also have to pay back up to 12 months rent or housing benefit payments if required to do so by a Rent Repayment Order (RRO). RROs are made by the first-tier tribunal - property chamber (residential property).

14 The council can also make an Interim Management Order in respect of an HMO where there is no reasonable prospect of it being licensed. 48. If the council does introduce additional licensing, how will it know whether the scheme is working? The council will develop and set benchmarks, key performance indicators and/or other targets to measure the success of the scheme if introduced and drive the scheme toward achieving its objectives. These will be monitored on a regular basis. The scheme will be subject to ongoing review and take into account any relevant circumstances along the way. A strategy will be developed for dealing with departures from measured targets during the lifetime of the scheme. 49. What would happen if the council decides not to introduce an additional licensing scheme? Evidence shows that there are widespread problems of poor condition property and antisocial behaviour across the borough and the council has considered a number of alternatives to an additional licensing scheme. These are outlined below: The council could continue with its mainly reactive approach to dealing with HMOs, responding to complaints as and when they arise. At the same time it could encourage better standards by further promoting landlord accreditation. This option has not been recommended as the benefits of additional licensing are considered to outweigh Ealing s current enforcement practice. In addition, while the council supports and promotes accreditation, this is an entirely voluntary scheme and there is no requirement for a landlord to be accredited. Accreditation does not therefore help the council in dealing with non-compliant landlords. The current regime could be expanded to allow the council to be more proactive and target the worst HMOs. This would require increased resources. The General Fund does not have the capacity to fund posts of this kind. Additional licensing raises funds that can be spent on staff and systems to help better police HMOs in the borough. As an alternative to a borough-wide additional licensing scheme, a scheme focusing on areas with higher concentrations of HMOs has been considered. This was not recommended because it would continue to fragment the approach to regulating HMOs across the borough which would lead to inconsistencies and confusion among both landlords and tenants. None of these options are considered likely to achieve the improvements for tenants and local communities that the council believes to be necessary. Whatever decision is made, the mandatory HMO licensing scheme will continue to operate. 50. What would happen at the end of the additional licensing scheme if the council did decide to introduce it? If introduced, an additional licensing scheme would last for up to five years. The council would develop benchmarks against which the success of the proposed scheme would be measured and a strategy put in place should targets not be met. This will also allow the council to undertake a review and to assess a future strategy beyond the life of this scheme

15 SECTION C SELECTIVE LICENSING PROPOSAL FOR PARTS OF ACTON AND SOUTHALL 51. What is selective licensing? Selective licensing gives local councils powers to regulate landlords and managing agents of private rented property under a number of specific conditions. Local authorities can introduce selective licensing under provisions set out in the Housing Act In April 2015 a significant widening of the selection criteria was introduced. Since then selective licensing may be introduced into an area if it satisfies 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 levels of deprivation High levels of crime Ealing Council is proposing to licence all privately rented accommodation in five areas of the borough where there is evidence of poor property conditions and persistent and significant anti-social behaviour which is linked to private landlords failing to take appropriate action to tackle this problem. 52. Why does the council want to introduce selective licensing? Selective licensing will be used as an additional tool by the council to tackle a variety of problems associated with the condition and management of the borough s PRS. In particular the scheme will enable the council to visit and inspect properties on a proactive basis rather than only visiting them in the event of a problem or service request/complaint. The licensing scheme will also give the council enhanced powers to effectively combat poor management within the PRS. Overall the council considers that selective licensing provides the best chance of improving the management and condition of properties in the PRS in the designated areas. Specifically selective licensing will enable the council to ensure all locally privately rented stock in designated areas meet the standards set out in the licensing framework. 53. Where does Ealing Council intend to introduce the scheme? Selective Licensing is being proposed for all types of privately rented homes in the following Wards: Acton Central East Acton South Acton Southall Green Southall Broadway

16 These areas have been selected because evidence shows they have high levels of privately rented accommodation which is in poor condition and there are significant problems with anti-social behaviour. In these wards, selective licensing would apply to every privately rented flat or house. Landlords who own more than one rented property in the designated areas would need to apply for a licence for each of their properties. The map below shows the areas of the Ealing where the council is proposing to introduce selective licensing. 54. How have the proposed areas for Selective Licensing been chosen? The council has taken great care in deciding which areas would be included in the proposed selective licensing scheme, using independently produced data. Full details about the methods used to select the areas for the licensing scheme can be found in The case for licensing the private rented sector in Ealing at Does Ealing Council intend to roll out the scheme across the whole borough? Currently the council has no plans to roll out selective licensing across the whole borough. The government has indicated that selective licensing must only be used in priority areas and the council has acknowledged the government s position with its current proposal to limit selective licensing to five wards in the borough. 56. Are there any exemptions to selective licensing? Yes, the following types of lettings are exempt from selective licensing: Council and housing association tenancies Holiday lets Where a family member rents the property from a landlord Long lease tenancies (21 years) Business tenancies

17 Properties where the council has taken action to close a property down Licensable HMOs (Houses in Multiple Occupation) under Part 2 of the Housing Act 2004 Where temporary exemption notices are in force 57. How would the proposed selective licensing scheme work? All private landlords with residential property within the proposed areas would need to apply for a licence for each property before they can be let to tenants. In order to become a licence holder landlords must pass a fit and proper person test. See FAQ What would be the licence conditions? There would be conditions attached to each licence under the selective licensing proposals which would relate to the management, use and occupation of the property. For full details see Proposed Selective Licensing Conditions at Do landlords still need a licence if they are accredited? Yes, but under the proposals landlords would be entitled to a discount on the licensing fee. For further details please refer to FAQ How long would the licences last? Most licences will run for the duration of the scheme, which will be five years. However, in some circumstances - such as where there is history of previous enforcement action against a landlord - a licence may be issued for a shorter period of time. 61. What is the proposed selective licence fee? It is proposed that a fee of 500 would be payable for each property under the selective licensing scheme for a five year term. Discounts will be available for early applicants and members of a landlord accreditation scheme. Additional charges would apply to landlords who are not licensed and have been sent warning letters. Full details of the proposed fee structures, showing discounts and penalties, can be found in Schedule of proposed fees for Additional and Selective Licensing at How will selective licensing affect tenants living in the designated areas? Selective licensing would make sure that landlords manage and maintain tenants homes to a reasonable standard, so that they are safe and in a good state of repair. Landlords would also be expected to act in a responsible manner. This would include carrying out tenant vetting, issuing valid tenancy agreements, providing rent receipts and keeping all safety certificates up to date. Licence holders cannot evict tenants illegally. 63. How would tenants know if their property is licensed if selective licensing is introduced in Ealing? Once a licence had been issued, the information would be entered onto a public register which could be accessed via the council s website.

18 64. How would other residents in designated areas be affected by selective licensing? All licence holders must be fit and proper persons and licences would have conditions attached to them. Strict monitoring and enforcement of licence conditions would help improve the condition and management of privately rented properties in an area potentially leading to an overall improvement of the environment in a local area. For example, licensing can lead to less fly tipping, an improved street scene and less anti-social behaviour. 65. What would be the effect of selective licensing on areas outside the borough? The introduction of a selective licensing scheme in Ealing might have an effect on local housing markets beyond the borough s boundaries. This is because, if Ealing were to introduce a borough wide scheme, it may cause the displacement of problems to neighbouring local authorities. Residents, businesses, landlords, tenants and other stakeholders outside Ealing have also been invited to take part in this consultation exercise. 66. If the council does introduce selective licensing, how will it know whether the scheme is working? The council will develop and set benchmarks, key performance indicators and/or other targets to measure the success of the scheme if introduced and drive the scheme toward achieving its objectives. These will be monitored on a regular basis. The scheme will be subject to ongoing review and take into account any relevant circumstances along the way. A strategy will be developed for dealing with departures from measured targets during the lifetime of the scheme. 67. What would happen if the council decides not to introduce a selective licensing scheme? Evidence shows that there are widespread problems of poor condition property and antisocial behaviour in the PRS in certain parts of Ealing. If selective licensing is not introduced in those areas the council would consider taking the following actions The council could continue with its mainly reactive approach to dealing with problems in the PRS, responding to complaints as and when they arise. At the same time it could encourage better standards by further promoting landlord accreditation. The current regime could be expanded to allow the council to be more proactive and target the worst PRS properties in the designated areas. This would require increased resources. The General Fund does not have the capacity to fund posts of this kind. Selective licensing raises funds that can be spent on staff and systems to help better police poorly managed PRS properties in Ealing. The council believes these options would not deliver the improvements needed to address the problems associated with the poor management and condition of PRS properties in the areas proposed for selective licensing. 68. What would happen at the end of the selective licensing scheme if the council did decide to introduce it? If introduced, a selective licensing scheme would last for up to five years. The council would develop benchmarks against which the success of the proposed scheme would be measured and a strategy put in place should targets not be met. This will also allow the council to undertake a review and to assess a future strategy beyond the life of the scheme.