March 23, 2023
The Housing Act 2004 gives Councils the power to designate areas to be subject to discretionary licensing in a bid to tackle problems in their areas, or any part or parts of them, caused by low housing demand and/or significant anti-social behaviour, subject to certain evidential criteria, public consultation, and approval from central Government.
A selective licensing designation may be made if the area to which it relates satisfies one or more of the following conditions (as set out at point 3 of the Government’s Guidance on Selective Licencing in the private rented sector: a guide for local authorities – https://www.gov.uk/government/publications/selective-licensing-in-the-private-rented-sector-a-guide-for-local-authorities/selective-licensing-in-the-private-rented-sector-a-guide-for-local-authorities:
- low housing demand (or is likely to become such an area).
- a significant and persistent problem caused by anti-social behaviour (intimidation and harassment of tenants or neighbours, noise, rowdy and nuisance behaviour affecting persons living in or visiting the vicinity, animal related problems, vehicle related nuisance, anti-social drinking or prostitution, illegal drug taking or dealing, graffiti and fly posting, litter and waste within the curtilage of the property)
- poor property conditions (there may be circumstances in which a significant number of properties in the private rented sector are in poor condition and are adversely affecting the character of the area and/ or the health and safety of their occupants)
- high levels of migration (to preserve or improve the economic conditions of the area to which migrants have moved and ensure people (including migrants) occupying private rented properties do not live in poorly managed housing or unacceptable conditions)
- high level of deprivation (the employment status of adults, the average income of households, the health of households, the ability and ease of access to education, training and other services for households, housing conditions, the physical environment, levels of crime)
Birmingham City Council (“the Council”) have proposed a licensing scheme for various areas in the city of Birmingham. A copy of the notice can be found here:-
This notice proposes that the designation for licencing will come into force on 5 June 2023 and last for five years before being re-assessed.
Where selective licencing applies, all landlords must apply for a licence if they want to rent out a property. The Council expect all landlords to submit a licence application as soon as possible. Upon the designation coming into force, any person having control of or who manages a property that should be licenced but isn’t, is liable to prosecution and upon summary conviction is liable to an unlimited fine pursuant to the provisions Section 95(1) of the Housing Act 2004.
The licence fee is proposed to be around £700.
The Council have advised they will start to enforce the new scheme from 4 September 2023 to give landlords enough time to apply for a licence.
Further information on this designation can be found here :-
https://www.birmingham.gov.uk/info/20175/private_housing/2649/selective_licence
If you require advise on any issues arising out of these legislative changes, please contact Birmingham City Council. Any landlords, managing agents or tenants within the designated areas (as set out on the Notice) should seek advice as to whether their property is affected by the Designation from the Council’s Private Rented Sector Team on the details below:-
- by telephone on 0121 303 5070
- by email to prs@birmingham.gov.uk; or
- by writing to: Private Rented Sector Team, Birmingham City Council, Units 1-3 Ashted Lock Way. Birmingham, B7 4AZ.
Kateryna Knyazyeva
Paralegal – Commercial Department
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