What The Introduction of Selective Licensing In Peterborough Will Mean For Landlords

If you are a landlord in Peterborough it’s important to know that from 11 March 2024 selective licensing is being launched in the city in certain designated areas.

Ensuring that you have the right license if your property falls in these areas will be crucial, especially since you can face prosecution or a civil penalty if you don’t. Here we answer the questions that you might have about the new scheme.

Who Will Administer The Scheme And What Will It Mean?

The scheme is administered by Home Safe on behalf of Peterborough County Council and will mean that property owners who privately rent their properties in designated areas of the city will now need to apply for a licence.

It’s a condition of The Housing Act 2004 that councils require residential landlords to buy a licence if letting property to tenants within a designated area. If you don’t you can face a financial penalty of up to £30,000 or an unlimited court fine. You could also be ordered to repay up to 12 months’ rent.

The scheme is designed to ensure a high standard of management of private rented homes by setting standards for landlords to meet. Property inspections will take place over the five years of the licence’s validity, either before or after the licence is granted, with the first programme of inspections beginning three months after its launch this month.

Why Is Selective Licensing Being Introduced?

Selective licencing can be introduced when an area exceeds a certain threshold of private rented housing, defined as 23.5% or above. In addition, the designated area will satisfy one of several specific additional conditions, such as low housing demand or high levels of migration.

An original selective licensing scheme ran from December 2016 in 22 different areas of the city and resulted in several improvements to properties. Under the new scheme, three new areas have been removed and five new areas added.

How Long Will Selective Licensing in Peterborough Last?

The introduction of selective licensing in Peterborough was approved for introduction by the Secretary of State on 4 December 2023 and will run for five years until 10 March 2029. Peterborough City Council can then decide whether to renew it or not.

In What Areas Of The City Will Selective Licensing Be Required?

The new scheme requires houses to be licensed where they have one or two tenants or a family living there. The scheme covers a variety of housing types, including flats, and covers areas within 10 electoral wards in Peterborough, the specifics of which can be viewed here.

Each property that you own within a designated area will require a licence which is granted usually to the property owner but sometimes to the leaseholder or manager or managing agent.

When Will I Get My Licence?

You can’t apply for the licence until it launches on 11 March but then must complete the application form, provide all relevant safety certificates, floor plans, and pay the appropriate fee. Landlords who apply within 30 days of the scheme going live face a reduced total fee of £608 compared to the £908 it will cost after that.

It can take up to 26 weeks after receipt of the application to grant or refuse a licence. It’s followed by a 14-day consultation period. Each licence is then valid for the full five-year period but isn’t transferable to another person if you decide to sell up.