selective licensing
📖 What is selective licensing? Meaning and definition
Selective licensing is a power used by local housing authorities (councils) in the UK to improve housing standards and management in specific areas. When a council designates an area for selective licensing, it means that any landlord operating a privately rented dwelling house in that designated area must apply for and hold a licence for their property. Failure to do so can lead to serious consequences for the landlord.
The purpose of selective licensing, as seen in the cases, is to ensure the maintenance and improvement of housing standards. Councils use their powers under relevant legislation, such as the Housing Act 2004, to implement these schemes. For example, a council might designate an entire city as a selective licensing area, as one case illustrates, or a specific part of a city.
For landlords, this means they must be aware of any selective licensing schemes in place where their properties are located. If a property is in a designated area and is not licensed, the landlord may be deemed to have committed an offence. This can result in financial penalties imposed by the council, or tenants may apply for a rent repayment order, seeking to recover rent paid during the period the property was unlicensed.
For tenants, selective licensing provides a layer of protection. If they discover their landlord has not licensed a property that falls within a selective licensing area, they may have grounds to apply to a Tribunal for a rent repayment order, as demonstrated in one of the cases where tenants successfully secured such an order against an unlicensed landlord.
📋 Requirements
- The property must be a dwelling house in a privately rented capacity.
- The property must be located within an area designated by the local housing authority as subject to selective licensing.
- The local housing authority must have made an order designating the area under relevant legislation, such as section 80 of the Housing Act 2004.
📝 Procedure
- Local housing authority designates an area for selective licensing.
- Landlords with properties in the designated area apply for a licence.
- Council determines if an offence has been committed for operating an unlicensed dwelling house.
- Council may impose a financial penalty against the landlord for non-compliance.
- Tenants may apply for a rent repayment order if the property is unlicensed in a selective licensing area.
💡 Examples
- A landlord owning a house in a city where the entire area has been designated for selective licensing must obtain a licence for that property.
- If a council designates a specific neighbourhood for selective licensing, a landlord with a rental property there must apply for a licence, even if properties in an adjacent neighbourhood are exempt.
- A tenant living in a property located in an area designated for selective licensing discovers their landlord has not obtained the required licence and successfully applies for a rent repayment order.
- A local housing authority identifies an unlicensed dwelling house in a selective licensing area and imposes a financial penalty on the owner for the offence.
📚 Legal basis
- Housing Act 2004
❓ Frequently asked questions
What is the main purpose of selective licensing?
The main purpose is to ensure the maintenance and improvement of housing standards within designated areas, as determined by the local housing authority.
Who decides which areas are subject to selective licensing?
The local housing authority (council) makes an order designating specific areas as subject to selective licensing, using powers granted by legislation like the Housing Act 2004.
What happens if a landlord doesn't get a licence for a property in a selective licensing area?
Operating an unlicensed dwelling house in a selective licensing area is an offence. The landlord may face a financial penalty from the council, and tenants may be able to apply for a rent repayment order.
Can a tenant get their rent back if their landlord doesn't have a licence?
Yes, if the property is in a designated selective licensing area and the landlord has not obtained the required licence, tenants can apply to a Tribunal for a rent repayment order to recover rent paid during the unlicensed period.
How can I find out if my property or my rented home is in a selective licensing area?
You should check with your local council's housing department. They will have information on any selective licensing schemes in effect in your area and details on how to apply for a licence or verify a property's status.
Does selective licensing apply to all types of rented properties?
Based on the cases, it applies to 'dwelling houses' in privately rented capacities within the designated areas. Specific criteria for what constitutes a 'dwelling house' under the scheme would be defined by the local authority's order.