Letting agents will face an increase in selective licensing after the Government revealed yesterday that Parliament will no longer need to seek permission from the Secretary of State to introduce selective licensing. Dew.
Currently, councils are required to seek central government approval for new or repeat schemes if they cover more than 20% of their geographical area or affect more than 20% of private rental housing in their area. This rule has been in force ever since. April 2015. 
However, new guidance from the Department of Housing, Communities and Local Government says this requirement will be lifted from 23 December 2024.
Housing Minister Matthew Pennycook hinted in July that central approval of the scheme was “under consideration”, suggesting this could happen.
devolution drive
The decision is understood to be part of Labour's “decentralization drive”, but some of the Whitehall strings remain and local housing authorities still have access to all legal provisions contained in Part 3 of the Housing Act 2004. requirements must be met.
A selective licensing system can only be introduced if there is low demand for housing in the area or if there are significant and continuing problems with anti-social behavior associated with private rental housing.
The new guidance adds: “Furthermore, local authorities will be expected to conduct at least 10 weeks of consultation on the proposed designation.”
In addition, local leaders need to be involved in decision-making, and councils need to regularly report to the ministry on the progress of the plan.
reaction
Chris Norris, policy director at the National Residential Landlord Association, said:
“It makes no sense that while planning to create a national database of private landlords, the government now wants to make it easier for councils to license landlords as well,” he said. says.
“Ministers need to be clear about how they intend to prevent the two schemes from duplicating each other or they risk becoming just a cash cow.
“The Government’s plan removes an important safeguard against abuse of the council’s licensing powers. It absolves ministers from any liability and leaves local authorities free to undertake unnecessary and costly projects across entire towns. You will be able to cover it completely.
“Data from 2021 to 2023 shows that seven of the top 10 most active councils issuing improvement notices to private sector landlords did not have a selective licensing regime in place. clearly shows that a licensing system does not automatically lead to higher levels of enforcement by Congress.”
Lucy Tiller, Communications and Policy Manager, Tenant Reform Coalition
“This is good news. For many years we have been calling on the government to expand and make it easier for Parliament to establish the landlord licensing system, which is a vital line of defense for renters,” she says.
“Private renting is different everywhere, so it’s important that councils are empowered to tackle local issues and raise standards. I look forward to learning more about these changes.”
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