Bristol Council agreed to roll out licencing to private landlords who own rental properties within Bedminster and Brislington West that aren’t a House of Multiple Occupation (HMO’s) in 2022. The selective licencing scheme will be rolled out to other wards in August 2024.
In this week’s blog Miller Independent looks to outline the key facts to provide a better understanding of what selective licencing is, how it will affect you and what your responsibilities are. Read Time – 3 minutes.
What types of licencing are there?
Mandatory HMO Licence
It is a legal requirement to hold a licence, as a private landlord for a House of Multiple Occupancy (HMO). An HMO is defined as a property that:
- Has 5 or more residents
- From 2 or more families
- Has shared bathrooms, cooking facilities etc.
Additional HMO Licence
Bristol City Council also has the Additional HMO Licence which covers property that:
- Has 3-4 residents
- From 2 or more families
- With some shared facilities
Selective Licencing
In April 2022 Bristol City Council introduced the Selective Licencing Scheme, this affects private landlords that own property rented out to single family households (basically all private rentals). It currently applies to Bedminster and Brislington West.
Bristol Council agreed on the 6 Feb 2024 that selective licencing will be rolled out to additional wards[1]:
- Cotham
- Easton
- Bishopston
- Ashley Down
This will come into force from the 6 August 2024.
[1] Seabrook, A (2024) Bristol landlords oppose new licensing fee scheme, URL: https://www.bbc.co.uk/news/uk-england-bristol-68275331
Selective Licencing Benefits
The benefit of selective licencing is that it allows the council to keep a closer eye on rental properties. And hold landlords to a higher standard of care when it comes to the upkeep of their properties.
It does however mean landlords have to pay an additional premium to obtain the licence and there is an additional burden on agents and inconvenience to the tenants with quarterly inspections (in place of the standard 6-monthly inspections).
How Much Does a Selective Licence Cost?
For Bedminster and Brislington West the charge is £799.
For Cotham, Easton, Bishopston and Ashley Down it is £912.
When you first apply for a licence, this is broken down into a deposit when you apply, and the remaining amount once the licence has been approved.
Once granted the licence will be valid for 5 years.
A discount of £150 can be obtained by being an accredited member of Rent with Confidence. This initiative is not managed by the Council itself, but with the West of England rent with confidence scheme, more information can be found here: https://www.westofenglandrentwithconfidence.co.uk/
How do you apply for a licence?
If your property is within a selective licencing ward, you would apply for a licence through the Bristol City Council Website. https://www.bristol.gov.uk/business/licences-and-permits/property-licences/check-if-you-need-a-property-licence-and-apply
The form should take around 20 minutes to complete, and you also need to make the initial payment at this point. This can be completed using a credit or debit card online. If there are any accessibility requirements the council provide an email address to discuss these: private.housing@bristol.gov.uk
A licence is required for each property. And other properties owned should be declared on the application form, along with anyone who has a legal interest in the property (agent, mortgage provider etc).
Each person involved will need to complete a fit and proper person declaration form, which asks about any unspent convictions etc.
The council are currently reporting a backlog and have stated it can take up to 9 months to get in touch. Don’t worry though, if you have submitted your application within 28 days of it being occupied (or the new licence coming into effect) your licence application will be upstanding.
The council have stated they will prioritise mortgaged properties where the mortgage provider needs proof of licence to approve their loan.
What are your responsibilities under the licence?
The council will check you have all the relevant documentation to legally comply with regulations:
- Gas Safety Record – dated within the last 12 months.
- Electrical Installation Condition Report (EICR) – Within the last 5 years and with proof of all C1, C2 and F1 codes have been rectified (more on the EICR in a later blog!)
- Energy Performance Certificate – Within the last 10 years and must meet the minimum energy efficiency standard which is E or above.
Once the property has been licenced there will be quarterly inspections to ensure the property is compliant to the licence conditions and hazards are addressed, as detailed within the Housing Health and Safety Rating System (Housing Act 2004).
A schedule of works will be submitted to the landlord and a reasonable amount of time will be given to rectify any issues.
What if they refuse the licence?
The council will provide details of why they have refused your licence, and you have 14 days to ask questions or appeal the decision.
Is my property exempt from the licence?
A temporary exemption notice (TEN) can be obtained for a period of 3 months and would be granted in the following circumstances:
- a section 21 notice has been served to terminate a tenancy.
- the property is sold subject to contract.
- tenants have given notice of their intention to vacate the property.
Are there penalties if you do not apply for a licence?
For the selective licencing scheme there is a fine of £100 if you do not apply. The council can also:
- take prosecution proceedings.
- impose a financial penalty of up to £30,000.
If you’re convicted, the Court may impose an unlimited fine.
You could also:
- have control of your unlicensed properties taken away from you
- be ordered to repay up to 12 months’ rent to the us or your tenants.
- be restricted on how you terminate tenancies.
Renewing your property licence
The council will notify you 2 months before the due date of your licence and will include a link to the form to initiate the process. You can apply for the renewal from 2 months before your licence expires, to 28 days after your licence expires. If renewal is after that time, you may be fined.
I’m here to help!
If you have found this helpful, please do let me know. At Miller Independent I keep up to date with the current legislation, so you don’t have to. Breaking it down into simple straight forward language so it is accessible to all. I also support my clients through this process as part of my service. Please contact me with any questions and sign up to my newsletter to get updates straight to your inbox.
References
Seabrook, A (13/02/2024) Bristol landlords oppose new licensing fee scheme, https://www.bbc.co.uk/news/uk-england-bristol-68275331
Property Licences (08/04/2024) https://www.bristol.gov.uk/business/licences-and-permits/property-licences
Housing health and safety rating system (08/04/2024) https://www.gov.uk/government/publications/housing-health-and-safety-rating-system-guidance-for-landlords-and-property-related-professionals