Paying for a selective licence?

Paying for a selective licence?

by Readers Question

Guest Author

0:02 AM, 30th May 2024, About a month ago 9

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Hi, as far as I am aware, while the cost of a selective licence is determined by councils, the process of paying in parts is set out in legislation. This was further clarified after the case R (Hemming t/a Simply Pleasure v Westminster CC [2017] 3 WLR 317).

The case stated that under Part 2 and Part 3 of the 2004 Housing Act, licensing fees must be charged in two stages. There is an application fee to cover only the costs of obtaining authorisation under the scheme, and a licence fee levied only on successful applicants to cover the remaining costs of administration and enforcement.

A lot of councils are stating the APPLICATION fee is Part A, then the LICENCING fee Part B. Part A is paid as you apply and submit the application online. So when should Part B be demanded?

The council area I have a property in, state that you must pay Part B BEFORE they issue you with a DRAFT licence. In addition to seeing a copy of the draft licence, you then see for the first time all the conditions of the licence attached so you can see what you are supposed to comply to. Then you have 21 days to ‘make any representations on the draft licence’.

My question is how can a council demand payment in advance (non refundable) for something you have no idea of what the detail is beforehand?

At what point is an application deemed legally ‘successful’ in this context?

Surely it can only be deemed successful and they can only demand payment AFTER you have been given the 21 days read through the conditions and obligations (ask questions if need be etc) so you can fully understand the conditions attached to the licence?

Part B fee is then demanded, because as the legislation states, this is for the remaining admin costs (presumably actually sending you the licence) and the post licence issuing action of enforcement?

Thanks for reading,

Reluctant Landlord


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Comments

sami jawad

10:45 AM, 30th May 2024, About a month ago

1- If the selective landlord licensing is a useful service to an area , why only landlords have to pay for it ?
2- Why landlords have to pay for five years in advance when they may sell the property in a couple of months and no refund.
3- Why the licence is not transferable to a new landlord ?
4- Why landlords can't pay monthly fees in the same way council tax is paid ?
5- Adding £10 monthly to the council tax in a designated ares would generate much more than charging only landlords hefty fees.
6- Why this relentless war on landlords and why we can't campaign to stop this war?

Judith Wordsworth

12:00 PM, 30th May 2024, About a month ago

Reply to the comment left by sami jawad at 30/05/2024 - 10:45
1. So they know who you are and where you are. And know to contact you to keep your tenants in order/or fine you for your tenants ASB lol

2. Money in the kitty. But such fees can only be used to run the Licensing Scheme not for any other purpose. Hence, thankfully, why Ldn B of Croydon is not allowed to ever introduce another LLS as government audit could not trace where all the Landlord Licence fees have gone nor what purpose they were used for.

3. Because they can get another 5 years straightaway from the new landlord

4. Better your monies in full up front

5. Why should non Landlords pay for Landlords licence that is an allowable expense for reducing your tax burden. Ordinary council tax payers not responsible for ASB of tenants, especially those who don't pay Council Tax, lol

6. Did you ever contact your MP about the PRS? Did you ever contact your MP about the Renters Reform Bill when it raised it's head? The Housing Minister(s) about the Renters Reform Bill?

There are Landlords who are not fit to be one - Some don't know the legislation/regulations governing the sector - they should before they become a landlord; think the PRS is a "game" not a profession; think they are "accidental" landlords - no one is, every landlord has made a conscious decision to be one.

Judith Wordsworth

12:10 PM, 30th May 2024, About a month ago

"How can a council demand payment in advance (non refundable) for something you have no idea of what the detail is beforehand?"

Because they can. And without a Licence you cannot rent out the property. Chicken and egg syndrome.

"At what point is an application deemed legally ‘successful’ in this context?"
When they have issued you your Licence.

They have made the offer of a Licence (even though you have to have one no matter what the Ts & Cs of it are); by sending in the application form you have accepted the offer and by sending payment (even part payment as knowing the 2nd payment will need to be paid) you've paid the "consideration" (£) = contract.

As you have no chance in getting anything in the Ts & Cs amended it's honestly pay it and accept it or don't and cannot rent out the property.

BUT every year demand in writing what the Selective Licence fees have been used for and a copy of the accounts. Any monies used NOT to run the scheme report as they are committing an offense. Which could, if you're lucky, see the Selective Licensing scheme curtailed and the LA never allowed to implement one again (London Borough of Croydon - Government decision)

Accommod8

13:21 PM, 30th May 2024, About a month ago

I am in the process of forcedly applying to Wirral B.C.for a licence (x 2), and the application form is hugely time consuming, for which obviously we get zero admin payment. It includes attaching copies of every certificate relating to each property-so not just form filling.
They seem to expect every property, for example, to have current PAT certification but, as I understand it, some properties might not be supplying white goods or have any wiring to sockets provided.
I couldn't believe it when I reached the section on mortgages where they require you to divulge who it's with, the reference number, contact and address etc. etc of the mortgage provider.
That is an imposition on my Ltd.Company's confidential information in my view, although of course it will be there in their Ts&Cs. Does it become a public record?
What is the rationale for having to know this? I object and will write to councillors and my MP when no longer prorogued!
It's a great point made above where you'll get nothing rebated if you've had enough and decide to sell.
I also didn't realise that, on issuing a licence, they appear to be able to immediately dictate what improvements you must make to your property, so could this include the likes of internal/external insulation in theory?
Both of our properties are well maintained and fully compliant, and I don't get how idiots setting a wheelie bin alight in the street connects with charging us astronomical fees to continue letting.

Accommod8

13:35 PM, 30th May 2024, About a month ago

Forgot to mention it also asks you:
"Are there adequate financial arrangements in place to allow the proposed licence holder to carried (their typo!)out improvement works at the property"?
and later:
"......any works REQUIRED by the local authority".
How far can they go with this? If you complain about the tone and wording, you can probably expect regular inspection visits.

Mick Roberts

8:26 AM, 1st June 2024, About a month ago

Yes disgusting isn't it, as far as I'm aware Nottingham are doing that at moment, we can't see the conditions when applying.

I can't license my flats as the Council own the building, & the conditions can't be complied with, as it's the Council who are in charge of certain stuff that the Council can't comply with the conditions. Absolute shambles.

Jessie Jones

18:22 PM, 1st June 2024, About a month ago

I'm curious to know what happens if the Council refuse to issue a licence, such as if you are not a fit and proper person, say if you have been diagnosed with dementia, and the Courts don't give you repossession, such as if you didn't serve the correct 'How to Rent' guide.
So you can't rent the house out as you can't get a licence, but you can't evict either!

Mick Roberts

5:27 AM, 2nd June 2024, About a month ago

Reply to the comment left by Jessie Jones at 01/06/2024 - 18:22
Yes good thinking, I've said same as I wanted em to deem me not fit & proper after all my moaning at Nottingham Council. I wanted em to force me to sell the houses, then it wouldn't be me doing the dirty on the tenants. But they said you can get Letting agent to run them for u.
Yes, they want the best of both worlds from both angles.
So you can't rent the house out as you can't get a licence, but you can't evict either!

Paddy Murphy

19:07 PM, 2nd June 2024, About a month ago

Have a read of this link and send a complaint to your council

https://www.londonpropertylicensing.co.uk/court-decides-that-property-licensing-fees-must-be-charged-two-stages-and-names-of-occupants-cannot-be-demanded-licence-renewal-application/#google_vignette

I had another issue with my council publishing my name and address on an internet register. I made a direct complaint and showed the law and they changed the register. So maybe you will be equally as successful with this issue.

Thanks to your original post highlighting the issue, when I renew my HMO Licence I will be requesting that my local authority charge the application fee separately from the licence issuance fee

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