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Nottingham’s Compulsory Licencing Faces Criticism

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

A new compulsory licensing scheme is due to come into force today in Nottingham.

The new selective licensing regime is estimated to cover 32,000 privately rented homes, although figures suggest the take-up of the compulsory scheme has been shockingly low.

It's estimated to be the second largest scheme in the UK outside of London, but local reports suggest applications totalling just 10% of the city's properties have been submitted.

Accredited landlords must pay a £480 fee per property while non-accredited pay £780. Out of the estimated 32,000 properties required to obtain a licence it appears only 3,140 applications were received as of the end of last week.

Under the licensing scheme, landlords will need to obtain a licence for each property they rent out to ensure it meets safety and quality standards. A licence will last up to 5 years and one licence will be required per property rather than per landlord.

There have been complaints that the new scheme hasn't been communicated with landlords and not enough time has been granted for landlords to acquire the licences. Therefore, there are concerns that rents will need to increase to cover the long-term costs as most landlords won't have factored in the cost when paying for a mortgage.