A controversial plan by a London council involving landlords has brought sharp criticism from many in the rents sector.
The decision by councillors in Newham, London to go ahead with their plan to license all private landlords in the borough has caused uproar with property investors with an interest in landlord insurance. They claim that up to 35,000 homes will be affected and that the council are “using a sledgehammer to crack a walnut”. David Salusbury, chief executive of the National Landlords Association (NLA), said “It is deeply disappointing that the London Borough of Newham has taken the decision to license all landlords in its area. The NLA realises that there are significant issues present in Newham, which the council is right to want to address, but selective licensing of landlords is designed to address distinct problems relating to housing management by targeting specific areas. Newham’s blanket approach goes beyond the intention of the legislation and has not gained the support of local landlords.”
It is thought some landlords could be fined up to £20,000 if they don’t register with the scheme but Newham Council, who completed a 10 week consultation period before deciding to press ahead were sure their policy will pay dividends. A spokesman previously said: “We want to ensure that private sector rented properties are well managed and meet a good standard. We also want to deal with the crime and anti-social behaviour that is sometimes associated with bad private sector rented housing. There are good landlords in Newham and we want to work with them. Unfortunately there are also some unscrupulous ones – which these proposals would target. We will never accept private sector tenants being directly exploited by landlords who force them to live in dangerous and unacceptable conditions.”
The NLA now fear that other councils will instigate blanket coverage that will have a negative effect on the sector.