careersclosedown-chevrondownloaddxfacebookfaxhistoryinstagramlinkedinmagnifymenuphoneright-arrowstartestimonialstwitter
Message us via WhatsApp

Landlord Licensing Scheme

Landlord-tenant law on an office table.

Liverpool City Council have recently announced the revival of the Selective Licensing Scheme for private landlords in the Liverpool City Region.

The scheme will cover 18 wards in the Liverpool City Region, namely Anfield; Central; County; Everton; Fazakerley; Greenbank; Kensington & Fairfield; Kirkdale; Old Swan; Picton; Princes Park; Riverside; St Michael’s; Tuebrook & Stoneycroft; Warbreck; and Wavertree. It is estimated that 45,000 out of 55,000 or around 80% of privately rented homes across the city will be covered under the scheme.

What is the Selective Licensing Scheme?

The Selective Licensing Scheme requires landlords of privately rented homes across part of the Liverpool City Region to apply for a license in order to let their properties to tenants. Providers of social housing are excluded from the regime, as are business tenancies, agricultural land/holdings tenancies, licensed premises and those otherwise required to obtain a license under current rules, such as owners of HMOs.

The previous Selective Licensing Scheme ran between 2015-2020 to a mixed reception. The Council and local tenants were generally supportive; however, it came under heavy criticism from groups such as the Residential Landlords Association. Under the previous scheme, more than 300 prosecutions were made against landlords and 87 civil penalties were issued. There were also over 2,500 legal notices issued and over 34,000 properties were inspected, with an estimated 65% falling short of full compliance on the first visit. It is estimated that the scheme was responsible for a staggering 85% of landlord prosecutions nationwide between 2015-2020.

When will the Scheme be in force?

The scheme is set to commence on 1st April 2022 and last until 31st March 2027.

I am a private landlord – what does this mean for me?

If you are a private landlord and you fail to license your property, you will be unable to seek possession of the property via the courts under the Section 21 procedure. In addition, you may be liable under section 95(1) of the Housing Act 2004 upon summary conviction or penalty to an unlimited fine or, as the case may be, a financial penalty not exceeding £30,000 per offence. A person who breaches a condition of a licence will be similarly liable. The landlord of such a property may also be liable to a rent repayment order under the Housing and Planning Act 2016, or in certain circumstances to entry on a database of rogue landlords, or to a banning order. It is therefore highly important that you ensure compliance with the terms of the scheme in order to avoid such penalties.

Under the terms of the license, landlords are expected to take necessary steps to ensure the safety of their tenants. The requirements include (but are not limited to); tackling fire and electrical safety hazards, excess cold and damp. If you are a private landlord, it would be advisable to take steps to ensure your rental property(ies) are fitted with working smoke alarms and fire detectors, adequate fire escape facilities, have an up-to-date EPC and gas safety certificate, adequate heating and are generally safe and well kept.

Whilst the aim of the scheme is said to be ensuring tenants’ safety and affording them added protection against ‘rogue’ landlords, the scheme came under scrutiny by the RLA who suggested that the majority of breaches in the period 2015-2020 were due to administrative errors. It was also suggested by Landlord groups that Liverpool City Council had a financial incentive in implementing the Licensing Scheme, however the Council have stated that they do not receive any profit from it, the money instead being ringfenced for enforcement against landlords who fail to comply with the licensing scheme.