Selecting licensing of landlords is carried out in areas where there is:
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low demand for housing (including low house prices, high numbers of vacant properties or a high turnover of occupants); and/or
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significant or persistent anti-social behaviour problems.
It can bring lots of benefits to the community, including:
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training and support for landlords;
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closer working between the council and landlords to make sure landlords can meet their licensing conditions;
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improved property management services;
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more stable rent levels; and
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higher property values.
Who needs a licence?
In areas where selective licensing is applied, all landlords will be required to hold a licence in order to rent out property.
To qualify for a licence, a landlord must be able to demonstrate that they are acting within the law and taking adequate steps to manage their properties and keep them safe. In addition, a ‘fit and proper’ person test will be applied to test the landlord’s suitability to manage a tenancy.
How is the licence enforced?
If the landlord of a property in a selective licensing area doesn’t have a licence, he/she commits an offence that may be punishable by a fine of up to £20,000.
If the landlord breaches the conditions of the licence, he/she also commits an offence and may be liable of a fine of up to £5,000. In extreme circumstances the council has the power to take over the management of the property.
Gateshead Council will work with all landlords in a licensing area to make sure they can comply with the terms of their licence before taking this action. These sanctions will only be used where all attempts to work with the landlord have failed.
There are currently two selective licensing areas in Gateshead: Sunderland Road and Chopwell. We’re also looking at introducing selective licensing in parts of central Gateshead and Swalwell. Click here| to take part in the consultation on these schemes.