Landlords feel the heat as Lambeth plans to introduce a compulsory licensing scheme for the private sector

Lambeth Council is set to introduce a compulsory licensing scheme for private landlords across the borough.

Four wards are being trialed as part of this scheme: Knights Hill, Streatham Common & Vale, Streatham Hill East and Streatham St Leonards will be the first wards to see the roll out of the scheme.

Private landlords will need to pay the Council £923 for a five year licence. This is broken down as £650 for admin, and £273 for any possible enforcement.

As a comparison, Southwark Council currently charges £900, Greenwich £858 and Waltham Forest £700.

The Council claims that the four wards have been chosen because they have nearly double the 14% national average for ‘hazards’ in the private sector.

The report that will be discussed at Cabinet on 16th May adds:

“They have a majority of older properties that tend to have more hazards such as excess cold, fire and electrical issues, damp and mould.”

Plus the close proximity of the wards apparently allows a ‘better implementation process’ in one geographical area.

There is no let up for most of the other wards in the borough. Phase 2 of the roll out will cover:

Brixton Acre Lane, Brixton North Ward, Brixton Rush Common, Brixton Windrush, Clapham Common and Abbeville, Clapham East, Clapham Park, Clapham Town, Gipsy Hill, Herne Hill and Loughborough Junction, Kennington, Myatt’s Field, Oval, St Martins, Stockwell East, Stockwell West and Larkhall, Streatham Hill West and Thornton, Streatham Wells and West Dulwich.

Missing is Vauxhall and Waterloo & Southwark.

The Cabinet report claims:

“There was not the evidence of poor property conditions in the wards of Vauxhall and Waterloo and Southbank.”

And nothing to do with the Labour Council not wanting to pick a fight with some very wealthy landlords in these wards and any possible legal action…

The scheme is being led by Labour Cabinet Member for Safer Communities, Cllr Mahamed Hashi. A 12 week consultation period took place ahead of the scheme being drawn up.

The Cabinet report states:

“The biggest criticism faced through the consultation process was around the Councils management of its own housing stock.”

Sadly the scheme doesn’t cover Lambeth’s own housing provision.

Fancy that.

Lambeth’s own poor record as a social landlord would fall short of some of the standards it is setting for the private sector.

Instead the 48,695 private rented sector homes in the borough will fall under the plans. This represents 33.6% of all housing in the borough.

The report estimates that 9,446 homes in the borough have a serious hazard.

Failure for landlords to make the necessary improvements will be dealt with by the Council’s Private Rented Enforcement and Regulation Team.

The report makes reference to landlords simply passing on the cost of licensing their property to tenants:

“There is a lack of evidence of increased costs to the tenants, as well as the fee being for the 5-year period and not an annual cost.”

Airbnb short term lets fall outside the legislation. There is the danger that private stock becomes Airbnb properties to escape the legislation.