Experts in the private rental sector fear that the recent controversial decision by Newham Council in London to introduce a blanket initiative forcing all landlords operating in the private sector to sign up for a license, could have far wider ramifications for all UK landlords.
The Newham licensing scheme has been brought in to try and weed out rogue landlords operating in the borough. Newham landlords now have to apply for a license to operate, and if they fail to do so, they can be fined a maximum of £20,000.
On the face of it, it seems like good idea: once they apply for a license to operate, landlords will have to submit to an inspection of their properties to ensure they are up the specified standard. However, the level of bureaucracy required to administer many thousands of private rental properties is likely to become a major headache, and many potential landlords are probably going to be put off the venture altogether.
Unfortunately it may take a while before the negative fallout of the Newham scheme makes itself fully known and many landlords are concerned (quite rightly so) that other Local Authorities will take up the Newham licensing scheme before they realise what the potential problems are. So instead of helping to ease the problems caused by a small minority of so-called ‘bad landlords’, the number of available properties in the private sector will probably fall and some of the most vulnerable families in the country left homeless as a result.
