Selective Licensing in Birmingham - Tenants could have rent paid back
Being an estate agent in Birmingham, we feel it is our responsibility to inform our landlords when new legislation is introduced that can have serious consequences if not adhered to.
Therefore, when we learned that selective licensing in Birmingham was being introduced on 5th June 2023, we felt compelled to write an article about it.
What is selective licensing in Birmingham?
Under the new legislation, landlords with properties in specific areas of Birmingham will have to obtain a license to let out each property. This includes properties within Birmingham City Centre such as those in Ladywood and The Jewellery Quarter, as well as twenty-three other areas.
The image above provides a comprehensive list of the areas impacted by selective licensing in Birmingham. If you are unsure if one of your properties will be affected, there is a tool here that will allow you to provide your postcode, and then inform you if a license is required.
How much will a selective license in Birmingham cost?
Aimed at improving the quality of housing, as well as, combating issues such as overcrowding and inadequate property management, each license will cost £700 and will be valid for five years.
How will selective licensing in Birmingham be enforced?
Landlords have until 4th September 2023 to ensure that they are compliant with the new legislation.
If after that date it is discovered that you don’t have a license, you could face severe penalties including:
an unlimited fine
being forced to pay back rent to tenants for the duration of the time that the property was unlicensed
Are any landlords exempt from selective licensing in Birmingham?
There are some exemptions to this legislation whereby a landlord will not be required to obtain a selective license such as when a tenancy is managed by:
a local housing association
a health service such as the NHS
an education institution
Additionally, if a property is licensed as a house in multiple occupation (HMO), these such properties are also exempt.
How do I apply for a selective license in Birmingham?
Landlords must make separate applications for each property via the Birmingham City Council website here, where you will be asked to provide a number of documents and other relevant details. This includes:
The name and contact information of the owner, leaseholder, freeholder, and mortgage lender if applicable
Copies of assured shorthold tenancy agreements that are active
Copies of compliance certificates including electrical installation condition reports (EICR) and gas safety certificates if applicable
Room measurements in metres squared (floor plans no longer required)
Why not take advantage of our six months of free property management?
New legislation in this sector is introduced regularly and it is crucial that landlords remain up-to-date to avoid any serious ramifications. That's where Matthews Estate Agents can help. With our six months of free property management, you can relax and feel assured that your property is in safe hands. As part of this service, we offer:
deposit and rent collection
deposit protection in an approved government scheme
management of maintenance and repairs
If you would like to know more about our six months of free property management or would like to speak to one of our experts regarding the new legislation, please don't hesitate to get in touch with us through the contact details below or via our website. Tel: 0121 358 0008 (Lines open Mon - Fri 09:00 - 17:30)