Newham is to become the first borough in the country to apply licensing to all of its privately rented properties. Newham councillors approved this pioneering scheme at a Cabinet meeting on June 21st covering an estimated 35,000 private tenancies (one in three of all the borough’s households).
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The trail-blazing licensing programme in Newham – where two thirds of the Olympics will take place – is due to come into force on January 1st, 2013.
The council has consulted extensively with residents, stakeholders, private sector tenants, landlords and lettings agencies. Seventy-four per cent of residents and 76 per cent of private tenants supported the borough-wide licensing scheme.
Private landlords will pay £150 for a 5 year licence if they register before January 1st, 2013. Otherwise the full fee is £500. Landlords who fail to licence face fines of up to £20,000.
The radical move comes after the borough announced the creation of a task force to combat ’sheds with beds’. These are illegal ramshackle buildings built at the bottom of gardens which often house tenants living in appalling squalor, often exploited by rogue landlords.
The council is determined to combat the incidences of anti-social behaviour and believes that the private landlords will assist with measures being employed.
The scheme is backed by national housing charity Shelter which has urged other councils to follow Newham’s lead.
This pioneering initiative has already been successfully piloted on a small scale in the borough’s Little Ilford Neighbourhood Improvement Zone (NIZ). The pilot scheme achieved 100% compliance following enforcement action against a small number of non-compliant landlords.
Newham Mayor Sir Robin Wales said:
“This scheme shows that Newham is a leading the country when it comes to tackling bad landlords who flout the law.
“We want to ensure that private sector rented properties are well managed and meet a good standard. We also want to deal with the crime and anti-social behaviour that is sometimes associated with bad private sector rented housing.
“There are good landlords in Newham and we want to work with them. Unfortunately there are also some unscrupulous ones – which these proposals would target.”
Sir Robin added: “We will never accept private sector tenants being directly exploited by landlords who force them to live in dangerous and unacceptable conditions.
“Good landlords have nothing to fear from this scheme. For the bad ones, this a clear message they must clean up their act – or pay the price.
“One bad house can drag down a whole street. We are doing this for the community.”
Kay Boycott, director of communications, policy and campaigns at Shelter, said:
“We are delighted to hear that Newham Council could be introducing this scheme, which would help protect vulnerable tenants from rogue landlords who are making their tenants’ lives hell.
“With a chronic shortage of social housing and more and more people being priced out of the housing market, renting is fast becoming the only option for thousands more Londoners. Our advice service for tenants in Newham sees people every day who are suffering at the hands of rogue landlords who are ignoring their responsibilities and wreaking havoc on tenants lives.
“We urge other local councils to follow Newham’s lead in sending a clear signal that enforcing the law against rogue landlords is a priority.”
Further Information
Proposal Report for Consultation PDF available here.
Independent Report of Consultations PDF available here.
Report of the Consultation Findings PDF available here.
Rented Property Licensing FAQs PDF available here.
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