Laura Tweedy examines the changing scope of private sector licensing
The Housing Act 2004 (HA 2004) introduced radical changes to the regulation of the private rental market when the relevant provisions came into force in April 2006. It allowed local authorities to designate their boroughs, or parts of their boroughs, as subject to a selective licensing regime. That meant any private landlord renting properties in the designated area had to obtain a licence. The licence imposed conditions which aimed to improve the private rental market in the designated area and the local authority obtained revenue from the licence fees. Various local authority schemes have been subject to legal challenge since.
In the past month there have been three substantial changes to these licensing schemes:
- The fines for breach have been increased
- The criteria for introducing selective licensing have widened
- If more than 20% of an area is to be designated, special permission is needed.
Increase of criminal fines
All private landlords in the designated area must obtain a licence. If they fail to do so,
