This blog follows the property market in Northampton with a particular emphasis on buy-to-let. On here you'll find general commentary about the market, plus properties that may represent decent buys. I own a large estate agency in Northampton and am myself a landlord with an established portfolio. If you're looking to invest, but are unsure what will work best, I'm happy to offer a (free) second opinion. If you have a property to sell I can help with that too! Email richard.baker@belvoir.co.uk

Wednesday 22 October 2014

IMPORTANT : Local Authority Licensing

This is an important blog and affects many landlords with properties in NN1, NN2, NN4, NN5.

The Local Authority is introducing an additional licensing scheme from 01 November 2014 which is compulsory for all properties that meet certain characteristics.

The Local Authority says this is to "improve standards in the private rented sector". It will cost landlords £323.25 for a 3 year license. The Local Authority also says "Landlords with licensable properties who fail to apply for a licence may face fines of up to £20,000, a criminal record and potentially rent repayment orders and a management order where the council takes control of the property". 

Which properties are becoming licensable?

Properties that require a license under the 'additional license scheme' will have the following criteria:

  1. be within the area defined on this map.
  2. AND have living accommodation on the ground foor and first floor ONLY. (properties with 3 floors, or a formal room in the cellar are exempt (no joke - don't even go there)).
  3. AND be rented to 3 or more unrelated people. This is where it gets interesting. My understanding from conversations with the local authority is that a couple (married or unmarried) plus one of their siblings will not require a license as they are all one family unit. However 3 unrelated sharers will require a license. And a couple (married or unmarried) plus one of their friends will require a license too. 
What will getting a license involve?

This isn't 100% clear as the Local Authority will visit and assess each property individually. However as a minimum we understand they would expect to see:
  1. The fee of £323.25 for 3 years.
  2. Self closing fire doors to all rooms.
  3. A mains powered interlinked smoke alarm system (category D). 
Clearly this is good fun for all landlords. Further details of the scheme can be found here.

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