At the start of September Lambeth’s selective licensing scheme began. Plans got approval in May following a 12 week consultation period and a review. So, landlords with properties in any of the areas the scheme covers need to ensure they get a license. We want to take a closer look at this today because it could have an impact on property investment in Lambeth.
Why was it introduced?
Lambeth Council has chosen to introduce selective licensing to improve standards in the private rental sector. They said that a third of the near 145,000 residential properties in the Borough are in the PRS. While most landlords are professional and properties are in a good condition, there are problems. In fact, their data shows that almost 9,500 properties have a serious hazard. In addition, the local authority has had more than 10,000 complaints about anti-social behaviour in a three year period.
With all of the above in mind, the council made the decision to pursue licensing. In the 12 week consultation there was also a great deal of support for the plans. An impressive near two thirds of responders were in favour. This included both residents and local businesses.
What does it mean?
Initially, the selective licensing will cover all residential properties let to single family households or at least two sharers. This applies to four wards to begin with: Knights Hill, Streatham Common & Vale, Streatham East, and Streatham St Leonard’s. These are areas where issues with PRS properties are worst.
Lambeth Council has also said they are planning to extend the scheme to other parts of the borough in the future. As a result, it could see selective licensing become a requirement in 19 other wards.
The most crucial thing to think about here, and perhaps one of the biggest factors to impact property investment in Lambeth, is the cost of the license. It is £923 for each property. This lasts for a 5 year period. The cost covers administration, management, and enforcement of the licensing scheme.
A key thing here is landlords will need to ensure they know when they need a license. They will also have to make sure that they comply with the standards, ensuring homes are safe and in good condition.
Any landlords that need help with the new licensing can find information on the council’s website. There is a handy link here. If you have properties in the four wards, you can register them on the site. You can also find information about things like discounts.
Cabinet response
When launching the licensing scheme, the Cabinet member for Safer Communities in Lambeth, Cllr Mahamed Hashi, had some comments. He said the area has a problem with deprivation, homelessness, and overcrowding. He was critical of rogue landlords that take advantage of tenants or simply don’t understand their responsibilities. However, he believes the licensing will ensure they can tackle the problem head-on. It will crack down on bad landlords, improving the quality of the PRS.
Do you want some help with property investment in Lambeth?
Finefair Ltd works hard to support landlords all across London. We can arrange all kinds of solutions, including portfolio expansion, HMOs, management, and more. Our speciality is guaranteed rent. It means you can agree to rent properties to the council instead of being a private landlord. In return, you get the guarantee of a monthly rental payment and a much smaller workload.
So, if you need any help at all, please speak to us. We can work with you to get the most from property investment in Lambeth and other parts of London. We’re able to work with all kinds of residential properties, including houses, apartments, and even blocks.
