1st August is D-Day for Nottingham’s Selective Licensing Scheme

Here’s what Nottingham landlords need to know about the selective licence

This isn’t a small thing. Nottingham Council’s scheme requires landlords to get licences for all their rental properties within certain areas of the city. It is the largest such system outside of London. This will mainly affect landlords with houses with 1-2 bedrooms, as properties with 3 or more bedrooms will already be licensed.

With the 1st August 2018 deadline looming, the council has opened up applications. As the majority of Nottingham landlords will need to license at least one of their properties, the race is now on.

Big fines

The stakes are high. City landlords who fail to procure a licence could be looking down the barrel of a £30,000 financial penalty notice, or an unlimited fine from a court. Further punitive measures could see landlords lose control of unlicensed properties and repaying 12 months’ rent to tenants or the council.

While this only affects certain parts of the city, landlords will need separate licences for each of their properties. The reality of the ‘selective areas’ is they cover a large swathe of the city (see the map below).

Estimates say that 30,000 houses will need licences and 94% of landlords will be affected.

 Nottingham's selective licensing areas

That means it’s crucial that you check whether any of your properties are affected. You can do this on the Council’s website: http://geoserver.nottinghamcity.gov.uk/myproperty/

Student properties

Student landlords might be looking at the map and ruing the new prospects for more official paperwork. Before you start filling out your application, you should note that Houses of Multiple Occupation (HMOs) are exempt from the new licence, as these properties are already regulated by the council.

If you do have properties that are covered in the new measures then, like your HMO licences, the new selective licence will be valid for five years. You can find example applications on the council’s website.

Evidence needed

Of course, as a conscientious and tenant-friendly landlord, the council want to see paperwork that you already have. That means you won’t struggle to provide the evidence.  The issue is of course the rush to the deadline and additional admin and cost.

As part of your application, you will need to provide the following evidence for each property:

• Proof of your right, as the licence applicant, to live in the UK

• In-date Gas Safety Certificate

• A valid EPC certificate

• Evidence of Landlord insurance

Depending on each property meeting other conditions, you might also be asked for:

• Emergency Escape Lighting Test Certificate (if this is present in the property)

• Fire Alarm Test Certificate, where there is a fire alarm control panel

• Most recent portable appliance test (PAT) certificate (If portable appliances are provided by the landlords)

• Building regulations completion certificate and planning consents (If applicable)

• Evidence of relevant training (if undertaken)

• Written Fire Safety Risk Assessment (If applicable)

• Evidence of relevant training (if undertaken)

Licence cost

The cost of the licence will be £780. You can knock £300 off this if you have accreditation for either of the council’s chosen agencies – student housing charity UNIPOL or Dash. This sees the fee drop to £480.

If you do want to become accredited, you need to get moving. You will need to apply to either organisation by 13th July. Your accreditation will also need to be in place before the 1st August deadline.

The selective licence is compulsory. You can only get a temporary exemption if you are selling the property. This exemption will last for three months. In rare circumstances, the council will extend the exemption, but after that the property will need a licence, or else you won’t be able to rent in out.

Large portfolios

If you have 30 or more properties in your portfolio, you can speak to the council to get some extra time to finish your applications. The website mentions three months as a possible time-period, so you’re not buried under paperwork. However, this extra time isn't guaranteed, so please check with the council before planning how you'll tackle your applications!

Getting help

As I mentioned above, many student houses will already have HMO licences, which means many student landlords are saved from this sprint to the finish.

However, with so many properties affected, there will be a large number of non-HMO student houses that will fall under the new regime.

Purple Frog's maintenance team is already handling our managed clients’ new property licences.

If you’re not a current client and you’re experiencing a sinking feeling about this new world of licenced properties, speak to us today. Simply call the office to speak to one of the team or fill in the contact form on our landlord page and one of our student property experts will be in touch.

More information

www.purplefrogproperty.com/blog/nottingham-council-gives-mandatory-landlord-licensing-green-light/

www.nottinghamcity.gov.uk/housing/landlords-guide-to-licensing-your-rented-properties/selective-licensing/