The start of September was a significant time for landlords and investors with assets in Lambeth. A selective licensing scheme came into force across much of the borough. As a result, it means there are additional costs and responsibilities. We want to have a closer look here. Then, if you need help with investment properties in Lambeth, you can discuss solutions with us.
Tackling problems
Lambeth Council has been pushing to raise housing standards in the borough. Crucially, they are working to tackle problems like overcrowding, dangerous homes, and anti-social behaviour. This comes in response to a wave of problems, including more than 10,000 ASB reports in a three year period and data predicting that over 9,400 properties may have serious hazards.
To overcome the problems and increase standards in the private rental sector, a market with almost 50,000 properties in Lambeth’s borough, the council began exploring the idea of licensing. It has been successful in various other parts of the city. There was also plenty of local support for the plans, with the majority of residents and local businesses voicing their approval in a public consultation.
Rollout
Initially, Lambeth Council did a trial of the selective licensing in 4 wards beginning in September 2024. Now, from September 2025 the scheme will cover 19 more wards. So, landlords in the private rental sector will need a licence for specific properties in all parts of the borough, except two wards.
A licence will be necessary for every private rental home that is rented by a single family household or up to two unrelated sharers. As a result, it covers the vast majority of properties. If you have investment properties in Lambeth, it’s essential that you understand your obligations here.
Costs
One of the most important things to look at is the costs. A licence for each property is £923, split into two parts. Licences last for five years, covering the initial duration of the scheme. Discounts are available in several instances, including properties with C or above EPC certificates. In addition, landlords with multiple properties in the same block pay the full fee once then save on each additional flat.
Penalties
It is now a legal obligation to get a licence for every applicable home. If properties are unlicensed, the person controlling or managing the property is liable, including the owner or management company.
The penalties for failing to abide by the licensing scheme can be severe. Lambeth Council could choose to prosecute. If successful, there could be a massive fine. Alternatively, they could issue a fine up to £30,000 in place of prosecuting. Rent repayment may also be due. Plus, there could be a banning order, meaning landlords or agents cannot have rental property.
Is it still a good idea to consider investment properties in Lambeth?
The goal with selective licensing schemes is to encourage improvements in the private rental sector, primarily the quality of the housing. There are definitely merits. At the same time, it is an additional cost that all landlords and prospective investors need to think about.
A crucial thing to keep in mind though is that Lambeth still has some of the most interesting places to live in London. There are popular areas like Brixton, Streatham, and Clapham. On top of that, you can choose hidden gems like West Norwood and Tulse Hill. Demand can be high in many areas for good rental properties.
If you do decide to commit and put your money into investment properties in Lambeth, we have some exceptional solutions for you. Our speciality is guaranteed rent. It can be a great alternative to the private rental sector, providing an easier set up and secure rental income. So, if you want to learn more, or have any questions, please get in touch.
