London landlords see licensing fines reach £900,000 THIS YEAR

Licensing enforcement in London has reached a new level of intensity, one firm reports, as fines for non-compliance with licensing schemes head towards £900,000 this year.

This surge, according to PropTech firm Kamma, comes as councils adopt more sophisticated strategies to crack down on landlords.

London’s landlords have forked out £10 million in licensing fines since Kamma began tracking the Mayor of London’s ‘Rogue Landlord Database’ in 2018 – and the penalties continue to rise sharply.

The firm also warns that the Renters’ Rights Bill promises to further strengthen licensing enforcement nationwide.

Targeted outreach campaigns

In its latest report, ‘Red Tape Revolution: The Next Wave of Licensing Enforcement’, the firm reveals that councils are increasingly turning to targeted outreach campaigns.

Plus, they are outsourcing enforcement to private contractors.

Kamma’s Chris Morgan said: “The steep rise in fines and the introduction of new licensing schemes are clear signals that many councils are replacing box ticking compliance with an aggressive multi-route approach.

“This year alone, proactive councils have stepped up their efforts to identify and sanction unlicensed properties.”

He adds: “As our latest report shows, top-performing councils are inspecting thousands of properties as part of their licensing regimes, setting a high standard for enforcement.”

Living in unlicensed accommodation

Kamma points to Oxford Council as an example, which recently launched a campaign to educate tenants about their rights and the consequences of living in unlicensed accommodation.

This led to a landmark £85,000 payout to students living in an unlicensed property.

Wolverhampton Council has also taken a proactive approach, investing £2.5 million in outsourcing its enforcement efforts.

This shift towards private contractors demonstrates the growing recognition that traditional enforcement methods may not be enough to deal with criminal landlords.

Financial risk for landlords

If passed, the Renters’ Rights Bill will increase the duration of rent repayment orders from 12 months to 24 months, doubling the financial risk for landlords who fail to comply with local licensing regimes.

The report provides a detailed analysis of the most effective licensing enforcement strategies.

The most successful councils, according to the report, inspect upwards of 8,000 properties over the course of a licensing scheme.

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